Feb 17, 2009 01:13 PM
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Credit cards are meant for use when one has no cash in hand.it all started like this. But now people do not carry cash or carry only limited cash and use the card instead. If you can keep a track of the usage of your credit card and also related it with the billing date payment date etc.
One can really reap benefits by way of points one get for the purchases. Never do a cash withdrawal on a card especially the new gen. bank cards. But a PSU bank card is much better for cash withdrawals and if you an repay it on the due date.
My advice to those own credit cards are that if you can use cash and get your things done there is nothing to beat it. In case you use your card you should be able to pay up the full amout within the due date which is also a better proposition. But payng the minimum amount required and charging you with interest at the rate of 40% per year will make you bleed.
If you have any large amounts to be settled yet, better take a personal loan and clear the debt off as personal loans carry only 15% interest rates(from PSU banks). BY way of paying interest on credit cards remember that it is the money your family is supposed to enjoy.
My advise is that keep one card with you for any emergency situation or use when you are out of station. Use cash to shop or do not shop if you have no cash.
The free insurance credit cards promise come with lots of terms and conditions and they are withdrawing such benefits one by one. When you decide to have one credit card go for a PSU bank credit card. Even if you default on payment nobody will call you and threaten you.
