6 credit card mistakes you should avoid

Credit cards give you the advantage of shopping even when you are low on finances. However, if you don't know how to utilize this card properly and overspend, then soon you will find yourself in a bottomless pit of debt. In this article we are listing the 6 common credit card mistakes that you should avoid. You should learn to take care of your credit cards, instead of letting them control you.

Are you paying only the minimum balance?
If you only paying the minimum monthly payment, an amount ranging from $15 to $25, then you are making a huge mistake. Paying just the minimum balance can push you more toward a huge debt crises. The interest on the balance will just keep building up and it will amount to a huge amount that you won't be able to pay off. Instead of just paying the minimum balance, concentrate on spending less on unnecessary items.

Do you use your Credit Card for Everyday Items?
In order to keep your budget in control, you should try and pay for your monthly necessities in cash with your monthly salary. This is a major step to keep your credit card bills in control. You might be tempted to spend when things are on sale and very likely will overspend resulting in hefty credit card bills. If you are unable to pay it in time then the addition interest charges will more than make up for the savings you made in purchasing things on sale.

Are you lured by Credit Card "Rewards"?
Credit card company offers attractive schemes on payments made via credit cards. While they are tempting and seems like a nice perk, they are worth far less than the interest you may have to pay on amount spend to avail of the bonuses. The bonuses are worth around 2% of the amount spend while the interest charges can be as high as 20%. Also beware of signing up multiple credit cards. They might offer you sign up bonuses, but if you are unable to manage your credit cards well, all the bonuses will be wiped out.

No Cash Advances please!
In order to lure customers credit card companies send you cheques in the mail and encourage you to use it. However, they don't clearly mention it as being a cash advance. Cash advances incurs interest charges, the moment you use them. Unlike, credit cards, they do not have a grace period and their interest charges are also high. Destroy these cheques, lest you be tempted to use it. They are a terrible del and it is best to stay away from them.

Avoid Using Your Credit Card to pay off Medical Bills
Don't use your credit card to pay medical bills. As it is medical bills can be huge and more so, if you are uninsured. The huge bill will only increase as interest charges are levied upon it. Instead talk to the medical service provide for an alternate and more relaxed way of payment.

Don't Ignore Your Debt
Sometimes, people ignore their bills and behave as if there is no problem. But, this can't irk for long. Sooner or later, you have to face the situation. In fact, ignoring it for long will only compound your problem as your interest charges will keep growing up. It will also affect your credit score and credit rating.

It is very important that you clear up your credit card debt. By following these steps and with a bit of self control and discipline, you can make yourself debt free. If you use your credit card sensibly, it can be great, helpful and convenient tool.