#2 Avoid using cards for cash advances

When you are in need of money, you draw it from ATM using your credit card—the easiest way to meet your immediate cash shortage. But have you ever realized the harm it can cause on your finances? Not only the interest rate alone charges from your account i.e. exorbitant upto 3.5 percent monthly but also you will be charged from the day one itself. Collecting some emergency cash from the nearby ATM Kiosk may also demand you to pay a flat transaction charge making it a hard game to play with.

#3 Never use card when you have restricted cash inflows

Situations in which you cannot promise a consistent inflow of cash, it is advisable to restrict the use of credit cards. Even though they offer a credit of 20 to 50 days, one is bound to be slapped with a heavy late payment fee if not repaid within the bill due date. Interest rates upto 3.5 percent and added taxes on these charges will be what awaits you in your monthly credit statement.

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