Pay off your credit cards:
If you wanna acheive financial freedom, Pay off your credit cards!!
If your using credit cards, you are utilising the future income today. It is a debt. Any form of debt is a burden for individuals.
Credit card gives interest free credit for 50 days by charging the annual fee.You should be very careful when your utilising the credit card, Few steps to follow for paying off your credit cards.
1) Pay your bills on time to avoid paying late fee and interest. Paying only the minimum due will help avoid penalty but not interest (32% to 40%) on the outstanding dues.
2) If you start paying minimum due amount, you lose interest free credit on the following month. You will end up paying more than what you utilise using cards.Control your expenses and spend as much as you can so that you can pay full by end of the month. Your credit card utilisation should be less than 30% of your income.
3) Never withdraw cash from credit card, you will be charged a fee for cash withdrawal and also interest for the amount withdrawn from day one.
4) Full utilisation of limit , Delayed payment of bills will affect your credit score. It is advised to keep your spending under limit and payment in full.
Proper understanding of your income and expense will help you to avoid using credit cards. start planning your weekly budget and monthly budget
Mentotax recommends to utilise the Investment not linked to financial goals to pay off the credit card bills. Mentotax also advises to you credit cards only for emergencies not for recurring expenses.
Financial independence can be achieved only when your free from debts.
Never fall prey to cashback, reward points and other offers by credit cards. It will keep you under debt always.
#Mentotax #CreditCards
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