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Tips to Avoid Credit Cardit Debt

Nothing is impossible with a Credit Card? THINK AGAIN!

A small amount of credit card debt can quickly snowballed to a huge sum if it is not taken care of properly.

Banks charge 24%p.a. interest on an overdue amount, there is an addition $30 late payment fee if you forgot to pay or missed the due date, and the bank also charge 24%p.a. interest on the $30 late payment fee!

4 Tips to Avoid Credit Cardit Debt

D.R.A.W

1) D – Differentiate between Needs & Wants

A ‘need’ is something you can’t do without (eg. food) while a ‘want’ is something you would like to have (eg. latest LCD TV, handphone). One can’t survive without food but definitely can survive without the latest Nokia Handphone.

2) R – Record & Tracks Your Expenses

Make it a habit to track your expenses daily, so that you know where your money is spent on and cut down on unnecessary expenses.

3) A – Avoid Late Payments

Don’t be foolish to add on to the debts by incurring additional charges, Always Pay On Time!

4) W – When to use Cash or Credit Card

Only use Credit Card if you have the ability to repay in full when the bills come, if not, it is better to use Cash.

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