Credit Cards A Menence
Oh Yes!Money matters,and with beginning of 2010 let me pour in few ideas that can probably inch a little bit more of your pockets!I know it has not been easy keeping that cash flow in for the new year!In my first blog of Money Matters let me start with credit cards and share my experiance with it...
while I was working for an MNC in india, I was flocked by credit card company's, i owned 4 credit cards, and did not mind getting a master card, obviously James bond owned one why not me! Now when ever I reached for my pockets while I was at shopping, I spend less of my savings and more of the credit that I had, now I was aware I was going to pay it of with my savings with in a week i spent from it, but what i was not aware is the hidden charges that i borrowed from these banks, by end of the year I was more in credit then in savings,and eventually since I am an Indian I could not even file for a bankruptcy! well the fact was I am not a james bond where I could have millions credited to my account by doing an Advert or a movie,but believe it or not,it took me 4 years hard work to pay all that off, I spent 3,00,000 and paid 4,00,000 as interest ! now thats huge for a mediocre like me...!
Did you know on an average an american owns 11 credit cards, and when they are totally in to debt they file for bankruptcy now that means spoiling their credit ratings,and this effects their career as well, as a matter of fact when they go for employment the company hires a candidate who has good credit rating then a bad one!so my friends avoid keeping these fancy cards.
If you do need a credit card make sure it is only for emergency when you are stuck at airport's or hospitals!and if you are in a position where you already landed up being in trouble my advise sit down and analyse which credit card has more interest rate, and pay that debt off and as well call these banks and ask them to block your credit cards so that you no longer spend from it and if your luck has it sometimes,banks may reduce the interest rate and charge what is due to them at a minimum interest rate.
For consumer benefit RBI has provided special guidelines,I am sure this link would be of great help to you
courtesy (http://www.banknetindia.com)
We are providing with the detailed guidelines of RBI, which can be of great help to the harassed customers. To read the guidelines ...
Remember! spending more then what you save is never the solution, simple living and high thinking is still the order of the day!
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