Choose the best credit card....

Credit cards are supposed to be used wisely... unfortunately, today's generations do not realise that they are not an available money in their savings account but it is a debt which accumulates 17.5% interest rate p.a. According to statistics, cards in circulation have grown 278% in 8 years from 2.8 million to 10.6 million in 2008... Back in the days, there were no CC, our parents manage to save money and buy houses, send us to university and the lists go on... But how did we get into this mess....

Proper education on using a credit card is the key to avoid this... For those who wants to get a new card, I have given out some tips on getting the best out of your card... if you already have a credit card... fret not, it is still not too late... here are tips on using the magnetic card frugally...

1. Compare all the available credit cards before choosing the one that suits you the best... if you are frequent traveller, it is best to get an international card (I prefer Citibank).
2. Keep 1 or 2 cards only (preferably 1 local bank and 1 international bank)
3. Charge only what you can pay back. Most of the items today can be paid in installment. Make sure the monthly amount stipulated can be paid.
4. Cash advances are big NO NO. No matter how desperate you are, do not fall into this situation. If you have no other choice but to withdraw, that indicates you are in serious money problem. Go and seek AKPK's help.
5. Don't ignore your debt. Some avoid opening bills once the debt starts ballooning. You can't run away from this. Start doing something about it.
6. Don't pay the minimum amount (5%). Pay more than your minimum amount as it will reduce the finance charges. Try reducing expenses on other things to focus on paying off your credit cards.

So, there you go, if you follow these, I am sure, you will be on your way towards a debt free life...