The poor are poor, the rich are rich

Chapter 51 4 Don't let the credit card "stuck" you

Chapter 104 Don’t let your credit card “stuck” you

A credit card is a financial certificate issued by a bank. Because it is used to spend tomorrow's money with today's card, there are certain risks in using it.Because, once you fail to repay the money after the time limit, on the one hand, your credit rating will drop and be recorded on the record; on the other hand, you will bear higher interest pressure and add money to yourself.

Ellie loves to go to boutiques very much. When she just graduated, whenever she had money, she would buy some small clothes.Later, I found that many banks can handle credit cards for overdraft consumption. This is a great joy for her who does not have enough money every month!So she opened several for herself, and then used her credit card every time when she didn't have enough money.But she always wanted to buy the best consumer goods, so she still found that she didn't have enough money.She thought of a way - to take advantage of the difference in repayment period between several credit cards, to make up for it, and to get a part of the excess consumption from the middle.

I don't know when it started, but the money on her card was always repaid, and since the interest was charged, the burden became even heavier.Gradually, she was always busy going around to repay the card fees. She took the money from this online account to pay that, and then took another credit card to pay this, and then paid back and forth. She had a pile of credit cards and a pile of credit card debts on her body!So her life became revolving around cards, and she also became a "card slave".

Being a "Kanu" is the sadness of Ellie as a modern person, but as mentioned in the case, this word is a fashionable word today, because she is not the only one who becomes a "Kanu". There is a group of people.The limitations of their understanding of credit cards determine their situation.So it's time to take a closer look at what credit cards are all about.

Before using a credit card, we should understand that credit cards also have two sides.It has advantages and disadvantages, so it is not a consumption model that you can completely rely on.

First, let's understand the advantages of credit cards.

advantage:

1.No need to worry about cash when spending

As long as you have a credit card, overdraft consumption of about 2000 yuan is not a problem.So it acts as a short-term emergency financial tool.

2.financing function

For credit cards, if they are not used for consumption, microfinancing is also feasible for venture capital.

3.Cycle overdraft function
During the interest-free period of a general credit card, if you repay a minimum repayment amount, you can restore part of the overdraft limit and continue to use the card within the validity period.However, doing so will result in higher bank interest rates.

Secondly, everyone needs to pay attention to its shortcomings.

Things to note:

1.Not every business is interest-free
According to the bank's regulations, only when paying directly with a credit card can enjoy up to 50 days of interest-free treatment, but there is no such discount if it is in a bank or an automatic teller machine.

2.expensive fees
If the money is withdrawn at a bank or an ATM, the daily interest and handling fee of [-]/[-] will be charged from the time the money is received.If the above two fees are not paid off in time, once they are due, the handling fee will also be charged with an interest of [-]/[-].

3.The repayment period will also be calculated
The repayment period is related to the date of swiping the card, the number of days in the current month, etc., so you should calculate the repayment date every time, because there may be differences every time.

4.annual fee

There is also an annual fee on the credit card.If you do not pay in one year, the next year will be calculated according to compound interest, and the amount will be even greater.

I believe that after fully understanding the characteristics of credit cards, you will have a deeper understanding of credit cards. You must not only see its side that can be spent in advance, but also its side with high fees.

(End of this chapter)