There are times when cash is no longer on hand and the debit balance is not enough to meet family needs, a credit card is a useful solution. It’s not surprising that many people apply for credit cards to get the most out of them.
However, the solution provided by credit cards is only temporary. You still have to pay credit card debt and interest. Unwise use of credit cards will actually backfire on family financial planning.
Of course, you don’t want to see your beloved family suffer because your family’s finances are in disarray to pay credit card debt. However, can you avoid getting into credit card debt?
So, to avoid fatal problems due to credit cards, pay attention to the following four important things regarding using credit cards:
Know When to Use a Credit Card
Use Credit Cards Wisely #Be SureYouCan Be Debt Free
The convenience of a credit card that only needs to be swiped when used has definitely attracted many people who have credit cards. Unfortunately, this is what can cause credit card problems. Many people are complacent and suddenly their credit cards have swelled.
To avoid this problem, you have to be smart and know when to pay using a credit card. You can maximize the benefits of a credit card, not only for urgent and emergency needs, but also to obtain available discounts. Apart from that, you can manage and assess your monthly expenses by regularly checking your credit card usage records.
Train yourself to be disciplined and obedient to the financial arrangements you have made. In other words, shop according to the priority list you have made and use cashless payment methods with the debit card, credit card or e-wallet you have when shopping. Or use the online transfer feature when you shop online.
Cashless payments using a debit card, e-wallet or online transfer will still make it easy for you and without going into debt because every cost you incur or spend is taken from the funds you save and allocate according to the arrangements you have made. However, you can still use a credit card as a means of payment, as long as you are disciplined and manage it properly.
Wait for the right time to shop
The urge to shop can make you easily swipe your credit card even though your financial condition is tight. This can happen at any time, regardless of the right time to shop. If this is the case, anyone can easily get trapped in credit card debt.
To avoid this, you need to be wise and shop at the right time. Buy something when you really need it. If you want to shop and have to use a credit card, you should double-check the print date of your credit card bill and shop in the period between the print date and the due date where you can be free from interest on the unpaid credit card bill amount.
Another option, if you really have funds for shopping, there’s no need to rush. It is common knowledge that at certain moments or dates, many sellers, shops and e-commerce offer discounts or discounts. The beginning of the year, holidays, or holidays and the end of the year can be the right time to shop
Take advantage of deals or promotions and use them wisely
Use Credit Cards Wisely #Be SureYouCan Be Debt Free
To attract customers to use credit cards, many banks are competing to issue credit cards with very attractive benefits. Although it differs from one bank to another, each bank has a policy of giving rewards to credit card holders who actively use their cards.
There are credit cards that are profitable if used for traveling because they provide points and miles. There are credit cards that are suitable for culinary fans because they provide attractive discounts when eating at restaurants or enjoying culinary delights at various merchants. There are also credit cards that provide cashback and are profitable for shopping.
So, you can take advantage of these various deals and promos to get additional benefits that can be used according to your needs! However, the existence of various deals and promos does not mean you can use your credit card as much as you like or as much as you like. Remember to use your credit card wisely while collecting the points you get.
Then, take advantage of the deals and promos you get to meet your needs. In this case, it doesn’t mean you shouldn’t use a credit card when there is a promo. However, you still have to think again about your family’s financial planning and your ability to pay off credit card bills. Carefully choosing promos that you really need can help you save money.
If there is nothing urgent, pay the credit card bill in full
Using a credit card is basically going into debt and you have to pay and pay off this debt before the bill is due. For this reason, make sure you are disciplined in using a credit card so that the bills you have to pay off will not burden you.
Apart from that, make sure to pay your credit card bill in full, if there are no urgent circumstances to pay some of it. Avoid paying only the minimum amount because this will make you have to bear multiple interest rates. The longer your repayment takes, the higher the interest you will have to bear.
In terms of paying off credit cards, there are banks that provide convenience in paying off credit card bills. One example is by providing installment facilities to pay off bills. However, it must be remembered! Whatever the convenience of paying off credit card bills, make sure the payment runs smoothly.
Credit cards are basically not something that will continue to harm you. Under certain conditions, a credit card can actually help you meet various important needs. However, as long as you are #SureYouCan do the tips above, you can definitely avoid the trap of credit card debt.
For this reason, having a credit card must be accompanied by proper financial arrangements so that in the end it doesn’t end up burdening you. In this case, there is HSBC Advance which can help you provide control over your finances with comprehensive financial solutions, as well as provide you with daily banking services and digital banking services that are capable of all your needs.
HSBC Advance will help you determine the right banking products and services according to your needs and habits, including credit cards. You can have a credit card with various benefits such as cashback of up to 25% for every transaction, double rewards every day and free annual fees as long as you are an HSBC Advance customer.
Apart from that, there are also savings and deposit products with attractive interest through HSBC High Rate Saving and wealth management products to optimize your finances to achieve whatever your financial goals are.