In India, talking about personal finances outside of your immediate family has always been an unpopular subject. Whether it is sharing food bills at a restaurant or planning a travel budget, people do not like to talk openly about their plans or fears about financial matters. Industry experts say that this is one of the reasons why we are lagging behind financially in the world. We accumulate debt and overflow with credit card payments as we do not know how to better manage our finances.
Many Indians do not know whether they have made good use of whether a valuable financial instrument can be an important financial instrument. Many people use credit cards recklessly and end up in debt. However, contrary to popular belief, if credit cards are used wisely, they can help us in many ways. In fact, it is actually better to pay the full amount by credit card than by bank cards and to keep the transaction at a minimum.
Here’s how to use credit card strategies to create a better financial practice:
Before you commit, ask yourself the questions – Why do you really need a credit card? Do you have the resources to pay off any debt, if needed? Do you know about savings? Experts say that this is one of the most important questions a person should ask before receiving a credit card.
Planning a budget is important – It is good to plan a budget every month to make sure you are able to use necessities, a better lifestyle and save. This will help you plan your finances and help get visibility into your credit card expenses so you can re-evaluate your spending. This will also help you know your usage limit.
Use a credit card that compliments your budget – The right way to use your credit cards can help you benefit in many ways that you may not be aware of. Experts say that all you have to do is make a budget, that is, plan your budget and allocate a portion of your expenses. Once you’re done, you can use the fixed amount for your purchase. This will not only give you a healthy balance but also rewards you.
Pay your bills on time – In order to be financially independent, it is important to ensure that bills are paid on time. There are several apps and credit card payment platforms like CRED, Paytm, PhonePe, Google Pay, Walnut, etc. What can help you set reminders to stay informed of your debts and payments, and encourage good financial behaviour.
Reward Yourself With Big Purchases – If you use a credit card for large purchases, your savings are always available for other activities. And you end up earning rewards, buying benefits, getting promotional prices, etc. In the event of an unforeseen emergency, a credit card can be a viable option if you are not able to pay all at once. Using a credit card is usually the easiest and cheapest way to make an emergency loan.
Maintaining a good credit score – Debt is a credit card number. Getting used to good financial habits such as paying bills on time and making sure you stay within the bounds of credit can help you achieve good credit scores over time.
Note that, experts say that although there are various credit card components, they require you to be disciplined, which shows that you have credit and helps to develop proper credit practices. Additionally, access to platforms like CRED is based solely on a healthy credit score.