Awareness Fridays: One Good Reason to Stop Carrying Your Credit Card in Your Wallet

by Vinaya HS on February 6, 2009

in Finance

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Because, Indian banks are now free to charge an annual interest rate of up to 49% from credit card customers for late payment.

Read the complete story here.

It’s not a great idea to carry your credit-limit-beyond-what-I-can-pay (most often …) credit card in your wallet especially in these lean times. You might be the most punctual person in paying off your credit card balances each month, but all it takes is one delayed payment to push you into the drowning spiral of debt. Leave your credit card at home, spend cash, and fully enjoy your life.

49%!

WTF mate?

What do you think?

Awareness Fridays is my initiative to spread awareness on topics relevant to personal finance — every Friday. I urge you to take some time off and absorb this information — it’s pretty useful. And, as always, do spread the word if you find this useful.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 2 comments… read them below or add one }

shilpa February 6, 2009 at 12:40 PM

Thank God, I don’t own a credit card.
I hope the same rule doesn’t apply to debit cards.

mang June 11, 2009 at 9:39 AM

I don’t agree to your views on credit cards. It all depends on how you use it. All one need is a financial discipline. Just because one is not carrying credit cards does not make that person spend less. There is always a debit card, an ATM nearby and hence the money to spend.

I am using 3 credit cards for last 8+ years and never had any problem. Here are my credit card usage policies:
1. Credit card with no annual fees/hidden fees
2. Carrying credit card is much safer than carrying cash
3. Use credit cards wherever they accept it (without transaction fee of 2%) and make sure that the statement amount is paid before due date
4. Make use of reward points
5. Make use no transaction fees at gas stations
6. Make use of opportunity cost

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