HOW TO AVOID CREDIT CARD DEBT TRAP?

[prosperityplanners]

Nowadays everybody owns at least one or more than one Credit Cards & about 30% or more are trapped in the vicious circle of ever increasing outstanding balance on their cards.

The credit card debt is a big obstacle in building & having wealth / prosperity. Hence here we are giving some tips to avoid the credit card debt trap.

Follow these tips & you will rarely get trapped!

Use credit card of provided by only one or two banks. Do not keep on adding cards to your wallet as it would induce you to spend unnecessarily.

Keep Credit Card Balances Below Half of the Credit Limit. Credit cards below the 50% mark create higher marks on credit reports than those past the half waypoint of the limit.

Always Pay Credit Card Bills On Time. Not only you will have to pay huge late fee (Rs.250-300) for not making your credit card payment on time but will be charged exorbitant over due interest @30-36% p.a.

Pay Of Credit Cards Before Other Debts. The compound rate of interest will take you for ride. Don’t just pay the minimum balance due but try to clear off as much as possible as the remaining balance will attract interest @ 30-36% p.a.

Never, Ever, Under Any Circumstances
·   Take a Cash Advance on a Credit Card Or
·   Loan Against The Balance On Card Or
·   Withdraw Cash from ATM Or
·   Avail the SPECIAL OFFER OF PRE-APPROVED LOAN
·   Accept the Cheque Or DD sent by Courier / Post by the Bank

Not only will you pay a ridiculous interest rate on the cash you withdraw, you’ll pay fees- and interest on those fees- for the remaining years on your new, giant–sized, credit card balance.  And moreover the interest is charged from the day you take the cash advance & not from the next statement date.

[Archu]

Hello Friend!

Thanks for such good info...
my queries:

is this apply for Debit Card also ...i mean for cash withdrwal from ATMs?

i always wonder how much these banks cut for every transaction? I have ICICI Debit card.

or when you buy from your Debit card...how much are the deductions???


Archana

[prosperityplanners]

This does not apply to debit cards because when you use debit cards you are using your own money.

Secondly when you withdraw cash from ATM's, banks do not charge upto 3-4 such transactions per month. But if you cross the limit set by the banks (private) they charge around Rs.25/- per transaction. You will have to check with your bank about the exact no of transactions & amount.

When you buy on debit card generally banks do not charge any amount as the charges are collected from the shopkeeper or vendor from where you buy the goods/service. Hence sometimes shopkeepers charge 2-2.5% on credit / debit card transactions.

[detta]

Hi,

I had a problem of  credit card debt. Thanks for the useful tips to avoid credit card debt. It is very useful for me.
Thanks

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detta

Don't be a victim. Stop credit card debt now. We can help.

http://www.stop-credit-card-debt.com