Loans from banks, licensed moneylenders, credit cards and other kinds of debts have been very popular in Singapore. Borrowing money from a lender might seem like a problem solver for those who are having financial issues, but if you cannot handle your debts properly, this would bring you down even more.
There was a recent study done in Singapore where it was shown that there are already more than 85,000 citizens in the country who have missed payments and unsecured debts attached to their credit cards.
How to Avoid Lethal Credit Card Mishaps?
If you wanted to avoid getting involved with credit card problems and be charged with high interest rates, you should make sure that you would usually avoid credit card mishaps such as the following:
● Paying your debts late
The top reasons why we are having troubles with our credit cards is because of paying it late. When you are going to pay your credit card balance late, you won’t just be charged with late payment charges but also an interest rate every month or some banks, every day you are not going to settle your debt.
An example of this is when you are going to pay $60 from your DBS Live Fresh Card and $80 for your OCBC Credit Card. If you can’t pay your credit card’s minimum monthly repayment by its due date but if you can pay the bank with their minimum monthly repayment, you don’t have to face any extra fees and interest rate anymore.
Solution: For you to avoid such a problem, always stay organized. You should make a reminder of your debts and make sure you are going to follow your reminder. You may also have your repayments automated where you can directly call your bank and have your credit card debts deducted to your account as soon as you receive your monthly credit card bill.
● Being influenced by perks
Credit card companies are being smart in engaging people to apply for their credit card that is why they offer perks that are genuinely tempting. These perks might seem great to have, but you also have to check whether it is worth it and necessary.
For example, the company offers you a gift but you are going to purchase items using your new credit card within a given time table and a minimum purchases worth of $1,500 to claim your gift which is already not that practical.
Solution: Before choosing a credit card company, make sure that they are surely the one who got the best offer in your areas such as their debt limit, different charges, interest rate and terms for you to get their welcoming gift.
● Closing out your cards
After finally paying your total credit card balance, you might be thinking to close your card. This move can affect your credit history because the average age of your credit accounts and the utilization rate is also included in your credit history.
Solution: To avoid this, you have to continue using your credit card. You don’t have to purchase big amounts every month using your credit card but buying items once in a while and repaying them on time is an excellent way of having a good credit history.