wahlau's online hut

Nowadays almost everyone has a credit card. In streets or shopping malls you might even see different companies trying to get more clients signing up their credit card services. When you are travelling or even just shopping for your stuffs, credit cards do provide convenience, especially when it comes to payment. But you will also see more and more credit card caused debts and bankruptcy - some what popular among youngsters. It will bring us the question - is credit card really a good thing?

As i shared before, it depends all on your perspectives and usage of credit card. If you treat it right, and never spend beyond the limit, it can be a useful tool. So today i will just list down some facts you might like to learn...

1. It is not future money
There is no such thing as future money in credit card. ok, they are some money you will loose in future, by paying it to the bank as fees and interests. As soon as you keep believing in future money, the more daring you will use your card. at the end you will just keep paying interests for your credit card debts. not really a good idea i must say.

2. Pay as soon as you can
Try not to use the credit card like installment. I have met people who spend and try to pay back in parts within a few months. It is of course possible and allowed, but you are paying some interests now and then. If you can simulate it, check and see how much you end up paying the bank. Imagine all these amount are kept to yourself if you always pay your credit card debts on time. It can turn out to be quite a big one :)

3. Watch your transaction frequently
a good money spender will watch his money flow carefully. The better you know your cash flows, the better you can tell yourself enough is enough. We usually do not check on the expenditure, and will just loose track of it. Soon we might be spending more than what we have. This is perhaps more true when it comes to end of the month :) So when you keep track of your expenditure, you will be able to warn yourself before your account hits red. And that is not the amount of all your money, remember, but the amount you allow yourself to spend.

4. Double check/ask yourself
The question you should also check with yourself is : "do i need it now and later?" many a times we thought we need something now and now. Then comes the idea of buying it with the credit card, since i don't have to pay immediately, or i can pay later slowly (bad idea!). This will lead to many unnessary purchases. Usually after a few quetsions, we will be able to identify the real need. The tougher part is not the identification, but the will to say NO. If you can handle this, you are on the right way.

At the same time i saw a website offering good idea on credit card. You can check out creditcards-gb.co.uk for their credit card 0% offer. In their offer you can even have 0% balance transfers. In that way you can transfer balance from your current card to them, and start with the new card new. If you follow the tips above, and never loose control on your expenditure, i am sure you are in good hands. Remember a good deal can only help you little with finances. Self control and being careful will promise you financial freedom.

*sponsored post and i have stuffs to share. :)*