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Do not take credit cards lightly

Do not take credit cards lightly Financial literacy surveys show that a significant part of the population does not know the difference between credit and debit cards. A credit card is a loan yet and its improper and irresponsible use can be very expensive.

A credit card can be an inexpensive and useful tool for those who can use it and have a concept of time. Requires a high degree of responsibility and discipline, because the piece of plastic that do not induce natural fear of spending and spending, as it can dwindling money in your wallet. "Not everyone realizes that the credit card is actually a loan, using it we take a loan, you are paying later, "says legal advisor magazine dtest Milos gin and adds:" Interest of the cards are quite high, but if the customer uses the correct grace period, then you may leave the money for regular payments to be a savings account and monthly pay everything. "

The interest-free period is often a stumbling block. Its length is usually preceded by the word "when," but what it means is usually a need to study the terms and conditions. "Often consumers encounter with the idea that the interest-free period is calculated from a particular purchase," says gin and explains: "This is a mistake. The Bank calculates the payment for each month and then determine the maturity of the bill. The whole interest-free period can be used only in the event that card use from day one and will pay the entire debt on time. "

Credit cards are designed primarily for non-cash transactions, ie payments at merchants for goods or services. Conversely ATM withdrawals is highly charged, this will be remunerated and often at a higher rate than non-cash payments. In principle, therefore, not included in the interest-free period. Large cash withdrawals from a credit card is often the last step in a debt trap, especially if it repays the loan or other debt from other cards. "Using credit cards can also build your own credit history and late payment may result in problems in the future be with arranging a mortgage, Credit card is also included in our total loans, "warns gin.

For more information and a comparison of certain parameters of selected credit card, visit www.dtest.cz / credit cards .



Source: tz dTest.cz



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