Use credit cards as convenient means to pay, not as instruments to borrow

Credit cards: Avoid the minimum amount repayment trap

Almost all leading retailers — both online and physical stores — have tied up with a credit card issuer to offer lucrative deals. Many consumers have got credit cards only to leverage upon such discounts. Credit cards also provide the perfect marriage of convenience (make big purchases without carrying huge wads of cash) and instant gratification (buy now, pay later). However, you could get caught in a debt trap if you are not careful.

A debt trap is like getting caught in quicksand — you keep sinking because its difficult to get out. As debt piles up, your credit score falls.