"Neither a borrower nor a lender be", advised Shakespeare. I wonder how many of us practice this. Credit Cards can best be described as 'I owe you' notes. The moment you use it, you are a borrower.
Many of us live with the myth that credit card is an additional source of money. At least, that is what the attractive promos would make us believe. While in reality, it is only a convenient and 'tempting' way of spending our own earnings. I have been a credit card user myself since a long time and have successfully avoided falling into the 'Debt Trap' by practicing the following simple rules:
Many of us live with the myth that credit card is an additional source of money. At least, that is what the attractive promos would make us believe. While in reality, it is only a convenient and 'tempting' way of spending our own earnings. I have been a credit card user myself since a long time and have successfully avoided falling into the 'Debt Trap' by practicing the following simple rules:
- No spending (whether through 'cash' or 'credit card') is outside the monthly expenditure plan.
- Credit card is only a 'convenient' and 'safe' alternative to Cash.
- Keep receipt of every transaction, whether carried out in person or through Internet.
- While checking out of a hotel, obtain & tear the slip of blocking money on credit card.
- Always make 'full' payment by the due date. But, only after cross-checking the bill with the receipts.
- While travelling, if you need to spend more than your credit limit, make suitable deposit in your credit card prior to travelling.
- Protect your credit card just as you would protect cash.
As credit card users, we can not avoid being borrowers. But, may we not remain 'borrowers' beyond the due dates. There are no free lunches in the world.
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