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Be alert of THESE common credit card mistakes to get rid of debt

Common Credit Card Mistakes: A credit card is beneficial to cater for your unexpected expense and to manage your financial plan. However, the use of credit cards may be contradictory in terms but if it is used with rewards and offers then it can improve your financial situation also. Many times we do not plan […]

Edited By : Divya Richa | Updated: Aug 9, 2023 15:18 IST
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Common Credit Card Mistakes: A credit card is beneficial to cater for your unexpected expense and to manage your financial plan. However, the use of credit cards may be contradictory in terms but if it is used with rewards and offers then it can improve your financial situation also. Many times we do not plan before using the credit card. As a result, sometimes mistakes are made while using it. These mistakes can lead to debt build-up.

This article gives details about common mistakes that people often commit while using credit cards and also gives tips to deal with these mistakes effectively.

Avoid late payment

Late credit card payments can have serious consequences. One should not miss the deadline for credit card payment. If you miss the last date of payment this will increase your interest rate on the respective amount. Missing deadlines can affect your credit card score negatively. If you are having difficulty making your payment, it is important to contact your credit card company as soon as possible. They may be able to work with you to set up a payment plan that fits your budget.

Avoid making the minimum payment

Making the minimum payment while paying credit card debt is one of the most common mistakes. However, this keeps your dent in control but it is not good for the long run as you’re your debt amount is increasing by leaps and bounds. So, avoid making minimum payments.

Avoid using Credit Cards Persistently

If you are in debt credit card helps to overcome this situation and provides you with debt to purchase items at the time of crisis. But it imposes a serious threat when you fail pay to the debt. So you should avoid using credit cards and focus on paying off your dues.

Do not ignore Credit Card Statements

Keeping track of expenditures is the utmost need for any credit card user. You review your expense statements regularly. This will help you to pay off your loan and you will be alert for your expense as well.

Take help of credit counselors

Many people don’t take help regarding the right use of credit cards. They are hesitant to share their problem of non-payment of dues with anyone, including credit counsellors. You should open up with the help desk of the company regarding the dues payment. It will clear your doubts a help to escape from the debt situation.

First published on: Aug 09, 2023 03:18 PM IST

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