Many people are afraid to use credit cards, because of scary stories. Some of them suddenly sank into debt, were billed by debt collectors and others. On the other hand there are also people who can get discounts, special offers etc. for using it. Actually the main problem is not the card, but the way people use it. Have you used it correctly?
If you have good financial knowledge, you can of course use a credit card in smart ways. At least you will not sink into the sea of debt. Remember credit cards are one of the consumptive loans with high interest rates. So use it in the right way.
Financial literacy people have the ability to manage finances properly, one of which is managing credit. Managing Director of the comparison site of the most popular financial product in Indonesia, Jai Breekman, stated that management of personal financial management can also be assisted with the use of credit cards.
“Credit cards not only function as a means of payment for alternative cash and debit cards. If you are more financially literate and careful, credit cards are really very helpful in daily financial management. “
How do you use credit cards smartly?
Take advantage of Credit Card Transaction Reports
You will definitely get a credit card monthly transaction report. For those of you who are lazy to record finance, these bills can be used as a tool for your financial control. Even though it’s not the right way to do it, but credit card transaction reports help a lot. This method is not 100% right, because you cannot control your finances in real time , because the billing statement is sent once a month.
Take advantage of Discounts, Promos and Ease with a Credit Card
Use it to get discounts (discounts), promos and certain conveniences. If you notice there are lots of discounts and promos offered. It’s actually okay to use a credit card to get a discount or a promo, provided you buy the items that you really need. Don’t let you buy things that you really don’t need, just because of a promo.
Take advantage of the Installment Feature (Terms of Conditions Apply)
Payment by credit card, makes it easy to purchase items with installments or installments . In financial planning, a benchmark for someone’s repayments is known. A person’s maximum installment is 30% of income. If someone earns IDR 10,000,000 per month, then the maximum installment is IDR 3,000,000.
Make sure you repay the items that you need and choose a favorable installment period. For example, do not repay a smartphone more than 12 months, because the price of a smartphone must have dropped.
Pay Recurring Transactions
Each family would have its expenses recurrent expenditure (recurring expense) to be paid every month, for example: money magazine subscriptions, electricity, tv dues paid, gym and other dues. Instead of having to pay a fine for late payment, use the payment feature using a credit card. This feature will certainly make it easier for you to manage your monthly finances.
Choose a Credit Card According to Your Needs
Have you ever seen someone who has more than 2 credit cards? Not everyone has the ability to manage it, more than 2 pieces. The government also provides limits, a maximum of 2 cards for people who have income below Rp. 10 million.
Choose one that does provide many benefits for you, for example you need a credit card that provides discounts for monthly shopping and additional benefits when traveling ( traveling ). You can balance cards that provide discounts at places you shop and credit cards with the benefits of airmiles .
Get the Benefits of a Credit Card, Avoid Paying the Interest
The cost that needs to be spent by someone using a credit card is the annual fee. These costs can actually be freed ( waive ), with certain conditions. There are some that free annual fees if you reach a minimum transaction. You don’t need to pay interest, if you always pay off your credit card month bills. Healthy behavior in spending credit cards will help your finances. Good luck.