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How to use credit cards with proper planning?
Posted on: 01/Oct/2018 12:10:21 PM
Nikhil Singhi (Financial Service Specialist) explains the pros and cons of using credit cards and how it can be managed effectively without converting it to long term debt or financial imbalance. In an interview with Live Chennai he mentions credit cards as a way to fall easily into the debt trap. One have to analyze carefully about the real need of a credit card before applying it. If the financial returns and expenditures do not match properly then credit cards can be one hell of an idea to destruct the hard earned wealth.
Mr. Nikhil expresses the importance of having a purpose to apply for a credit card. With the modern digitalization where cashless transactions are encouraged all over the nation the credit cards holds an important place in the economic scene of each individual. But finding the real purpose with subjective interrogations of ones income and expenditures is the only way to decide rightly about getting a credit card from your bank and to manage it effectively.
Fixing specific purposes to use the credit card on a regular basis and also maintaining the same money limits that can be paid back soon within the limits of the income are the major criteria for using this economic tool. Realizing the purposes of credit cards and the self-imposed money limit allows the easy payback and planning options.
Designated usages should be planned beforehand and one should use the credit card only for those particular applications. Domestic usages should be carefully handled for a credit card limit by fixing the designated purposes and sticking on to it strongly. Mr. Nikhil also insist for having safe cash always to pay for any kind of emergency or urgent financial needs. Using the credit card in all life and business scenario will destroy the very purpose of financial freedom and may choke you with debts forever. So choose the purpose wisely and use the credit card to enhance the financial aspects and budgeting in terms of both domestic and commercial usages.
