Not many! And many are likely to file for bankruptcy soon enough. To be honest, it is all a matter of choice. It is you who decides how your plastic-obsession turns out to be. All you need to avoid the distress is to ensure a responsible behavior towards the usage of your credit card. While a responsible behavior depends on how well you are able to control your urges to spend, it can also be supported through tools such as a credit card pay off calculator.
So, here are a few tips from our experts who wish to promote a highly responsible behavior among credit card consumers.
The very first tip is to shop wisely –even when you are shopping for the card itself. Make sure you have compared various offers for the best rate and terms. A number of providers are infamous for incorporating hidden charges within the jargons of the terms. Make sure you have carefully read and understood all the terms and policies and the rates are clear and transparent to you.
Once you have the card, don’t forget to leave it home when going grocery shopping. This may sound ridiculous, but credit cards are not meant for everyday shopping. Make sure you use it only when you are not able to pay in cash or with a debit card. Credit cards may be more convenient, but that convenience comes with a price you may not be able to pay off later.
Another thing you shouldn’t purchase using credit card is something that you are not able to afford at all. Remember, if you can’t afford it today, you won’t be able to afford it tomorrow. Huge purchases are one of the major reasons behind heaps of credit card debt that becomes completely impossible to pay off. Make such a purchase only when you are sure of paying it off completely before the interest starts to pile up on it.
Another mistake responsible users never commit is making the minimum payment even when they can pay more. When you spend more and pay less every month, it doesn’t really help. Use this option only when you have to. The minimum payment calculator is designed for users who have lost all hope of ever repaying their debt. The calculator helps you analyze how much minimum payment you must make in order to pay off the debt. You’ll have to put a lid on your expenses though.