There are a few factors that have been responsible for punishing the consumers over the edge, for example mortgage crunch, rising energy cost and continuously decreasing saving rate. At the times of inflation, people often use their credit cards to get the benefit of time levy that the consumer gets to pay his usage. But these benefits can turn into a nightmare for the customer.
Actually the truth is if one cannot make cash payment to purchase any stuff, you cannot afford to buy the same. Credit cards can be used as financial assistance to purchase that stuff that one cannot afford to buy.
The usage of credit card should be done carefully. Credit cards provide a benefit of allowing the customer to pay the amount of purchase. But below are some factors you should look out for while using your credit card:
High Interest Rates - Credit card companies charge sky-high interest rates because consumers are willing to pay them. Simply pick up the telephone and ask your creditors to lower your interest rate.
Late Fees - This fee is assessed as a penalty when you don't make your payments on time.When you are shopping for a credit card, be sure to compare late fees. If you can't make the payment, this fee will set you even further behind.
Bounced Check Fees - Banks charge a fee for bounced checks; many credit card companies will also charge a fee if you send them a check that doesn't clear. Avoid this added expense, if possible.