Apart from its main function as a means of payment, the reason people like to have a credit card is because it is practical, easy, part of a lifestyle and a symbol of status. Credit card issuers always puts a myriad of positive benefits from the product – but unless used wisely, they can have a negative effect on your finances.
Using credit cards for cash:
One thing in the usefulness of the credit card is a payment delay. This is the main function of a credit card in lieu of cash. This formula is important that credit cards do not become a burden at a later date.
Because of its role as a substitute for payment, it is wise not to treat the credit card as a cash machine. Sometimes these side is ignored by credit card holders. Quite often they use credit cards as cash when needing funds quickly.
Indeed, credit cards can withdraw funds quickly like an ATM debit card. At first glance it seems simple and good solution when cash is needed. Keep in mind that to draw cash from credit cards makes no difference between KTA loans or unsecured loans . Bank Indonesia (BI) has already set maximum limit credit card interest rates at 2.95% per month, either for purchase or cash withdrawal transactions (* Ref 1). However if not careful, the amount of interest on the cash borrowed on the credit card can still be very expensive.
In contrast, the benefits obtained by treating the credit cards as means of payment, are good, especially the fixed expenses like electric bills, phone credit, monthly expenditures, and the like. Let the credit cards do the work to pay off all of the monthly transactions.
This is where the card can be a personal financial assistant. Credit card holders will know their fixed expenses each month via the information listed in the bill sheet (statement).
Additionally, credit cards are a useful way to manage consumption. The trick is to simply specify a that a maximum limit of credit card bills should be less than a third of income.
If you find these tips useful, or are interested in any of our services, please visit our website, KreditAja.com.