BANGALORE: It has become a usual practice for many to carry credit cards instead of cash wherever they go. Yes indeed credit cards are handy and are really convenient as you can shop without carrying a lot of money around, but beware they can also get you into trouble. Credit card is often the worst way to finance a purchase. Credit card debt is unsecured and typically carries a higher interest rate than a car or home loan. Also unlike a home mortgage or student loan, credit card debt is never tax deductible.

Let’s have a look at few instances where you should avoid using credit cards:

1. College or tuition fees

Nowadays there are a lot of loans available to students that offer low interest rates, and they also have deferred payment options as well. This means that you can borrow the money at less expense and wait to pay it back until you've graduated and gotten a job. But unfortunately not many are able to pay off the entire amount in the given time frame.

That's a great deal, so don't charge your college tuition. It is advisable to, not to depend on credit cards for such payments as interest rates incurred are more. Additionally, some colleges who accept credit will charge a processing fee between 2 percent and 3 percent of the tuition payment.