We all have bad habits but some of them can impact our personal finances like the bad habit of overdrawing credit cards. Even though it’s a very common mistake it’s still a huge mistake that affects us not only in our personal finances but also in our mood and overall well-being because when owing money our stress levels increases and can unleashing other kinds of diseases.
If overdrawn frequently, your credit cards and constantly facing serious credit problems can become a habit in your life! A lot of people across America have told their stories about having a bad experience with credit cards and with this you may wonder: why do they keep using them? The answer is simple, credit cards are taken as “easy money” and this idea is very attractive for most people because they are not thinking about future payments that they will have to pay back.
Credit cards offer great benefits like: mile plans or discounts at restaurants and stores, etc. But today we want to let you know about the mistakes you’re making when using your credit cards.
Not paying on time or paying only the minimum amount
This is something many cardholders do and it triggers a vicious circle they cannot control. To avoid this and many headaches, we advise you to always pay for all your expenses from the previous month, doing so you would never have to pay interest and it won’t become a problem later.
Using the ATM a lot?
This is a great option in case of an emergency. But, if you constantly use your credit cards to get cash from the ATM, you are spending 10% more than you withdraw! Many credit cards charge you extra for using the ATM.
Having extra cards…
There are credit cards that give you the option to have additional cards for family members or friends linked to yours. This is not a wise move because as great as it seems it could affect you if the other users don’t make good use of it.
There are many mistakes we can make when using credit cards. Please be very careful while using them and evaluate if your credit cards are more of a trouble than actual help, and if they are then you should evaluate yourself regarding what mistakes you are probably making.