Tips to use credit cards

Credit Card payments has become a common tool used by people today because of the ease and practicality. However, if less wise and careful use of plastic money is actually able to trap and drown you in a financial mess.

Well, here are five credit card traps that you should avoid:

1. Minimum payment
Do not just pay the credit card minimum payment each month. Therefore, the habit will prolong the period of interest payments and credit card debt will swell as a whole.

2. The number of credit cards
Avoid having many credit cards as you increase the risk for falling into debt entanglement. In addition, some credit card that you have will make it difficult to track spending. Having many credit cards do not really matter as long as you do not abuse it. Instead, limit the maximum credit card ownership two.

3. Due date
Never miss a payment due date on credit cards. You will be exposed not only due to late payment penalties, but interest rates to be jumped. Sign up for online banking facility to facilitate payment of credit card bills.

4. Cash withdrawal
Do not choose the facility of cash withdrawal through your credit card. Because these facilities are usually accompanied by the high interest rates and additional service fees. It's way too expensive to withdraw cash!

5. Annual Fee
If you have a credit card, also perhitungkanlah annual fee you should pay, and remember when to pay. Although relatively low, but if you have many cards would mean a lot of unnecessary spending, too.