 "Use credit card with discretion: Here're fees, charges and penalties")
- Treat a credit card as a convenient means to pay and not as an efficient way to borrow
- Understand charges, fees and penalties (See table) and avoid taking excess debt
- The most common reason for the build-up of debt is that borrowers make only partial payment or pay only the minimum amount due
- The balance, then, gets added to the next bill and the combined amount attracts extremely high-interest charges
- Eventually, the cardholder has to pay heavy interest on the outstanding
- Once in a debt trap, the only recourse is to take a personal loan to clear the debt or convert the credit card dues into equated monthly instalments
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%