CREDIT CARD WOES

Credit card woes
Hi, I am sure you are of the breed which lives on credit card and still curse it(quite often).Sir/madam, this card does not have any fees to join, no fees per annum and it’s a lifetime free card…. We also give you credit for 30/40/50 days- what more, we will also give you points for every purchase which can be redeemed for gifts etc.WOW- these companies are so benevolent and they want to give their money to me…..But hold it dear--- even after knowing the fact – you curse it why….Lets get into detail- how these companies earn money and how they rob you….Have you ever noticed there are charges whenever your bill comes- service or interest etc.- Money made. But how does your money go even after you knew them???Lets say- you shopped for 20000 Rs. on March 25 and your card company gives you a months credit and you bill cycle is 1st to 31st and pay by 10th…… you think that you should pay by 25th april- But still you are charged interest in next bill- WHY? Because you forgot to read that all bill must be settled at the given dates –NO matter What- .Your credit card bill comes and it says bill amount 20000, minimum amount due 1500 and you happily pay 1500--- BUT remember you will have to still pay interest. Hence MONEY MADELets say, your bill amount is 20000 and you pay 15000 due to cash crunch and thought that you will pay interest on 5000 which you can afford!! And you shopped for another 25000 in the next month….. Your interest is then calculated on total amount outstanding till the last bill is cleared- so , effectively you did not get any credit period for 25000 Rs. and paid interest on 25000 Rs. Plus 5000 on last month. MONEY MADE..Now comes the cardinal sin of withdrawing cash from credit card. You know that the cash withdrawl attracts interests from the day you withdraw money…… So you withdraw 5000 Rs. and your credit card statement show interest charges higher than what it should have been for 5000 Rs. cash withdrawl….. Why?? Because you forgot to read the fine prints….. The day you withdraw cash, your outstanding on shopping which was unpaid as well as all the subsequent shoppings till you cleared all payments is WITHOUT credit period and interest is charged on them all. MONEY MADE……SO, Next time, we use our cards, lets use them judiciously. Remember- There are no free lunches in Life, at least not with Finance Cos.
Sudhanshu yadav