Are you taunted by the urge to run to the mall and buy those beautiful shoes or that chic dress on Sale? Is retail therapy your idea of venting out all that stress? If your answer is a resounding yes, then hold that thought right there. Lets think this through one step at a time, it is quite understandable to give into your retail cravings. But, at the cost of what?
Priya loves to shop. She literally believes in Shopping till she drops and there’s not a week that goes by without a visit to the mall. Irrespective of whether there’s a sale or no sale, she has to visit the mall and buy herself whatever she ‘feels’ like. If there is a sale going on, then the motivation for a mall visit is all the more. Priya’s credit cards are one too many, she realized the burden of it only when she let go off the past two credit card bills unpaid. She is definitely an impulsive buyer, but not a responsible one at that!
Now, how or why did this happen? Two main reasons, one would be because of the fact spent more than she could handle, second and the more important reason was that she was unaware of its future implications. Let us try and find a solution for both of these causes.
#1 When you spend more than you can handle
Every time we swipe a credit card, we never really care much about how much we spend. But, that’s not right, is it? What most of us fail to understand is that, credit cards cannot be used as a substitute for money.
One golden rule all of us must keep in mind is that, we shouldn’t spend more than what we earn. Especially so, with the case of our credit cards – these electronic financial weapons can wreak havoc in our lives, if we don’t exercise caution when required.
The moment you skip one bill, you will be charged a late fees and if you don’t pay at all – you will be charged closed to 3% of interest in addition to your existing unpaid amount. And the longer you leave it at that, the more unnecessary amount you will be asked to pay.
#2 When you don’t know the implications of unpaid credit card bills
So, is this the end of the road? Not if you pay your bills fully. Remember, a late payment maybe forgivable but skipping your bills altogether gives the impression of someone who isn’t responsible enough to pay back something they’ve borrowed. This is precisely why lending institutions will defer from granting you a loan.