The use of plastic money has gained wide popularity not only in the United States of America but through out the world. Reports suggest that on an average an American household uses approximately 14 credit cards.
If the credit cards are not used judiciously, it may lead to a situation where a consumer may have to run from pillar to post to get his finances back on track again. Come December and you can feel the demand for credit cards skyrocketing.
However, the most important factor that needs to be kept in mind is to use the credit cards wisely. A consumer may get tempted by the various offers, the credit card companies offer during the festive seasons and during the holidays. It is often seen that people get tempted to avail various credit card offers during the holiday season and end up losing control over their finances.
Save yourself from "holiday hangover"
There are many financial experts who refer this habit as "holiday hangover". It has been observed that generally people tend to overspend with credit cards and become very impulsive during the holiday season.
However, there is one way to spend for the holiday season. You can start saving small amount of money the year round and buy gifts depending on the availability of your finances.
You can follow the tips given below to control your usage of a credit card during the holidays-
• Do not get tempted to buy a credit card which does not have long term low interest rate (APR).
• Once you have decided with your credit card, go through the rules and guidelines thoroughly because the credit card companies frequently change rules.
• Make it a point to make your payments regularly.
• Make the full payment and do not stagger your payments.
• You should never exceed your credit limit. That way you can keep a check on your impulsive buying.
• Avoid availing cash advances. Cash advances attract a very high rate of interest and if you do not pay on time, your outstanding balance go on increasing.
• Try to carry only one credit card. By doing so, you can keep your expenses in control.
• If you have not been able to maintain the golden rules for avoiding the "holiday hangover" and finally land up in debt, get out of debt at the earliest.
You should remember that just as plastic money can be of immense help and saves your from carrying cash, it can draw you into a vicious cycle of debt. So before your credit cards start controlling you, you control them, especially during the holidays.
If the credit cards are not used judiciously, it may lead to a situation where a consumer may have to run from pillar to post to get his finances back on track again. Come December and you can feel the demand for credit cards skyrocketing.
However, the most important factor that needs to be kept in mind is to use the credit cards wisely. A consumer may get tempted by the various offers, the credit card companies offer during the festive seasons and during the holidays. It is often seen that people get tempted to avail various credit card offers during the holiday season and end up losing control over their finances.
Save yourself from "holiday hangover"
There are many financial experts who refer this habit as "holiday hangover". It has been observed that generally people tend to overspend with credit cards and become very impulsive during the holiday season.
However, there is one way to spend for the holiday season. You can start saving small amount of money the year round and buy gifts depending on the availability of your finances.
You can follow the tips given below to control your usage of a credit card during the holidays-
• Do not get tempted to buy a credit card which does not have long term low interest rate (APR).
• Once you have decided with your credit card, go through the rules and guidelines thoroughly because the credit card companies frequently change rules.
• Make it a point to make your payments regularly.
• Make the full payment and do not stagger your payments.
• You should never exceed your credit limit. That way you can keep a check on your impulsive buying.
• Avoid availing cash advances. Cash advances attract a very high rate of interest and if you do not pay on time, your outstanding balance go on increasing.
• Try to carry only one credit card. By doing so, you can keep your expenses in control.
• If you have not been able to maintain the golden rules for avoiding the "holiday hangover" and finally land up in debt, get out of debt at the earliest.
You should remember that just as plastic money can be of immense help and saves your from carrying cash, it can draw you into a vicious cycle of debt. So before your credit cards start controlling you, you control them, especially during the holidays.
1 comment:
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