PROBLEMS-

  1. Too much credit:

An individual thinks that using too much credit would be fun but they are unaware of the fact that it will cost a lot. Borrowing has to be paid back as soon as possible so as the credits too. We applied for a good use of credit card but failed to cope over those expectations.

  1. Not paying bills on time:

Most of us delay at the time of payment due to several reasons. An individual wants maximum amount of money without working hard or paying bills. For several products we do not directly pay bills through cash because of the credit card system. In the end, we are trapped by the credit bills.

  1. Using more than your balance:

An individual deposits a sufficient amount, where else, uses more than that. Besides, it is a credit card. But, we are unaware of certain consequences emotionally at that time and cry at the end blaming the banks. Blaming is easy, acceptance is difficult.

  1. Using at daily purpose:

As soon as we receive a credit card, we start using it on daily purposes. Whether it is a gas station or a grocery, we use card. We become so bound to it that we tend to forget about the savings, salaries, rents, etc. For minor expenses, it is totally a bad option.

  1. Consuming maximum for rewards:

The credit card companies attract the holders to use more credit to attain certain rewards. For earning few rewards, people use their cards more and then get huge bills at the end. They have to pay the bills at any cost. Rewards system is not necessary to be consumed every time.

  1. Lending card to your friends:

So, many people lend their credit cards to their friends, family or beloved for certain shopping. Most of the time, these people use the maximum amount and do not pay at the end. An individual suffers the loss alone because he/ she were the account holder.

  1. High interest rates:

People apply for a credit card, avoiding the fact that many banks charge high interest rates. They spend the most credit and end up paying the most money with high interest.

SOLUTIONS-

  1. Avoid using too much from your card:

The first and the most important solution of the misuse of credit cards is avoid using it too often. Stop being too dependent on the card because at the end, and individual has to pay the bill for it as well.

  1. Buy things from your income:

Buy the things you adore or the groceries from your personal income, unless and until something bad happens. Stop using the credit/ borrowed amount for the necessary things. This will lead to your own exploitation.

  1. Don’t be too grateful:

Stop being too grateful towards everybody you know. Avoid giving them your card because in the end, you will have to pay for it. They won’t pay a penny and blame you for your card charging too much cash every time.

  1. Stop wasting money from credit card:

Just stop wasting your money from the credit card or more of the credited balance. Save that money for emergency sake. The excess money used will be of no use. So, simply avoid it.

  1. Go for low interest rates:

Go for the low interest rated banks. Be careful before applying for it because every single penny worth. The lower the interest rate would be the low amount one might be paying at the end.

  1. Don’t use it daily:

Never use your credit card daily. The daily use will increase the reward amount (that is always lower than the used amount) and of the credit card bills as well.

  1. Pay your bills on time:
Always pay your bills on time no matter what happens because one delay will be a huge amount for the next time with high interest applied. Use your card wisely within certain limitations of your personal income. Check out America's Best Bookkeepers
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