Good Lifestyle

The credit card of your wallet is a powerful spending tool that can make life much more practical. When used properly, it can save you a trip in the automatic counter to withdraw money, help you strengthen , and even allow you to score money or reward of points in a way that simple flow cards cannot. The new technology has also made sure that the cards are now more widely accepted than ever for transactions of all sizes. But just because you can Swipe when the time comes to pay does not mean that you should . Read the rest to find out what financial experts say that you should never use a credit card.

Read this then: Never use your debit card for these 6 purchases, according to financial experts .

Even if credit cards can often make species unnecessary, you can always use them to remove invoices from the pinch. However, experts warn that this is an unwelcome way to use your plastic, which can cause costly consequences.

"Take a fundraising from your credit card is like contracting a high interest loan", " financial expert Alastair Hazell recount Better life . "You will generally be billed for funds in advance, as well as a higher interest rate which is starting to accumulate immediately. Unlike regular credit card purchases, there is generally no grace for grace for The advance advances, you will therefore start to pay the interests of the moment you withdraw money. "

Part of the convenience of having a credit card is that it allows you to cover an expenditure out of blue in a pinch and not to drain your bank account. But although the idea of having available for use in an emergency may be comforting, experts warn that you may want to be careful not to prepare for financial problems.

"Whether it is a medical emergency, a home repair or any other unexpected expenditure, the use of a credit card can easily lead to a situation where debt is difficult to pay", explain Trinity Owen , financial director for The parent of home remuneration . "If you are in a situation where you need to use your credit card for a large unforeseen expenditure, try to repay the debt as soon as possible to avoid interest."

Read this then: Never use automatically for these 6 invoices, according to financial experts .

Since subscription services become a more common model in the business world, it also becomes more common to park most regular costs on your credit card. After all, it can be a way to help organize your expenses and stay more easily on them. But if you are not careful, it can also become easy to miss any unexpected change or increase in your bill. AE0FCC31AE342FD3A1346EBB1F342FCB

"If you register for a subscription service, such as monthly membership in the gymnasium or online streaming service, be sure to review your credit card declaration each month to make sure you are not billed What you expected, "suggests Hazell. "If the service starts to automatically charge your credit card, it may be difficult to cancel or challenge the costs."

Stores have facilitated the execution of your credit card or press your phone to make a purchase that it can sometimes be easy to forget that other payment options are available. But if you have a budget, expenses, even the necessities, can sometimes become uncontrollable if you are not careful.

"You must avoid invoice purchases such as grocery store, rent, public service bills and petrol to your credit card unless the invoice can be paid entirely at the end of the month," said Jeffrey Stouffer , A financial expert and certified financial planner with Justanswer. "These are common daily expenses, and if it becomes necessary to finance these articles, this indicates that current budget planning could use an examination. This may not be obvious due to the ease that such purchases can be made, in particular in the light of the current inflationary environment. "

For more financial advice delivered directly in your reception box, Register for our daily newsletter .

Part of the drawing of credit cards can be their ability to extend your expenditure power. This can be particularly useful in cases where you may need a little more time to reimburse an expensive or expected purchase. However, experts warn that you should not slide or type on sale without a clear roadmap of how you will pay for this.

"Although the use of a credit card to buy a large ticket object can be tempting, you will want to consider the long -term cost of the deletion of this debt," said Hazell. "For example, if you buy an item of $ 5,000 with a credit card which has an interest rate of 18% and that you make the minimum payment that each month will take you almost 10 years to reimburse the balance - And you will finish paying almost $ 3,000 in interest. "

Although credit cards can make our lives more practical and organized, they can also quickly become a dangerous catalyst for excessive expenditure. The feeling of having what looks like an infinite amount of money at your disposal could lead to unnecessary purchases that can land certain consumers in heaps of debts that can be difficult to escape. This is why it is essential to be aware - and to avoid - this trap too familiar.

"Purchasing of pulses can be tempted, but they can also be a source of financial problems. When you make an impulse purchase with a credit card, you may not realize how much this purchase really costs you until To what you receive the invoice, "warns Owen. "By avoiding impulsive purchases and using money instead, you can make sure that your credit card is used for purchases for which you have planned and that you can afford to pay."

Best Life offers the most up -to -date financial information for the best experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.