Family Finance Tips: Credit Card Yes Or No?

Family finances tips need to be considered for managing family finances. It is very important to be managed properly because the management of its finances determines family economic circumstances. One of the things that can be done is the use of credit cards. However, the credit card must be used wisely and with discipline.

Credit cards can be used as one tool to manage family finances. The advantages in the use of credit cards, namely:

Practically used as a substitute for money with large nominal.
Can pay the household bills.
Can be used as accident insurance while traveling, without having to pay insurance premiums anymore.
Can get insurance while experiencing discomfort while traveling.
Can get 24-hour health consultations and get emergency medical evacuation facilities.
Getting the Executive Lounge facilities. If you have a credit card type of gold or platinum, we can enjoy in the lounge area located around the world. As well, enjoy a variety of offerings for free.
Reward program available.

If there are advantages certainly there are shortcomings that need to be considered by you. It should be understood carefully, namely:

The cost is huge, because the credit card is not a debit card.
Credit card is not an emergency fund. Savings fund will be used to reimburse the nominal in use, when using a credit card.
CC can cause costs. For example, annual fee, interest charges, cash advance fees, admin fees, late fees, over limit, card replacement costs if any, and the fee request copies of the notification bill.
If you pay the minimum payment, you may pay interest in a year about 36% - 48%.

Tips family finances with the use of credit cards should only apply to you and your family. However, be aware of the benefits and impacts. Not to use credit cards will increase the financial burden of the family. Discuss in advance with the family, whether it is necessary to use a credit card or not. Wise and discipline were the one to make decisions and use them if necessary, hopefully useful.

2 comments

Anonymous

October 28, 2015 at 3:31 AM

Without good guidelines or resources we cannot write anything.I like the way of writing and presenting.This is very informative article.I am very happy to see this type article.Many resources are providing the different information about the different topics.Waiting for your new stuff.

Edgar Buckley

January 6, 2016 at 11:19 PM

It is really important to maintain a good finance balance in family; otherwise we are suffering from bankrupt issues. We understand the value of money and therefore we should take preventive steps to earn and save money; instead of invest in useless things we should for good options. So it is quite better to have credit cards through which we are able to purchase whatever we want in anytime apart from using cash.
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