MAKE YOUR CREDIT CARD WORK FOR YOU DURING CRISIS

The title itself might have raised your eyebrows. Like most people, the moment they read the word ‘credit card,’ the image of a plastic card flying in your mind together with the high-interest rate and debt trap. Take a deep breath and sit back while you read on.

It is true that in some cases, the credit card had not only caused a debt trap to the young executive, but it has caused the bankruptcy. This only happens when these credit card holders are not being educated on the wise usage of a credit card. But when you use your credit cards wisely, you may turn credit card use into opportunities.

During this critical time of the post Covid19 crisis, you will be surprised to learn that your credit card could save you and/or your business. Here are some tips on how it can be done:

1. Safekeeping your Cash

Many people are struggling to deal with the loss of income and pay cut. At this point, whatever cash you have in hand is extremely useful for an emergency. Try using your credit card for items that allow you to so you could float those costs for you to retain your cash in hand longer. Leverage on the grace period to pay off your credit card balance. This will be a good time for you to understand your billing cycle and how it can help you to avoid finance charges if you pay in full each month.

2. Obtain Extra Time Allowance

You can use a credit card with interest-free days to make purchases without being charged interest for a set period of time in your billing cycle. It is not ideal for carrying balances on credit cards with high-interest rates if you can avoid it, in any case. Over time, interest charges can pile up and make that debt harder to manage. You can also utilize your credit card interest-free period to gain profit. For example, you can use your credit card to pay business invoices for stock replenishment. By the time you earn back your cash flow, you can repay your credit card before the due date with interest-free. Interest-free periods can be quite confusing, but super rewarding if you know how they work.

3. Shrinking Your Commitment

Yes, the high-interest rate nightmare comes back into the picture. When the time is terrible, cash is tight, and the interest will increase, even a minimum repayment will not be able to help. To stop this from continuing, you should opt to combine your debts via a balance transfer. It involves transferring the current outstanding credit card debt to a new credit card, which offers either a very low or even 0% interest rate. So, the idea is for you to consolidate all of your credit card debt into one credit card that offers you a much lower interest rate.

Visit our website jomSETTLE to find out how your credit card can be useful and benefit your spending style.