Advisory on Credit Card Usage

Don’t get a credit card in the first place.
If you do get a credit card, only use credit for purchases you really need. If you want the new flat screen television, save up the cash for it.

Pay your balances in full every month.
If you can’t pay your balances in full, try to pay more than the minimum, even if two hundred or 500 ruppes —it will dramatically lower the time it takes to pay off the debt.

Don’t be late with your monthly payment. Credit card companies charge late fees of Rs 200 or more for late payments and then increase your interest rates often to incredibly high amounts like 45 percent.

Credit card companies don’t check up on the amount of debt you are carrying when they approve you for a new card, so don’t get more than one card.

Use a debit card with a credit card symbol on it. The old rationale for using credit cards because they were “convenient” is out the window now that debit cards that function as credit cards are available. Using a debit card will make you more aware of how purchases affect your budget, and will help stop impulse buying.