In Citibank online credit card bills, there is a trick word known as minimum payment. Why trap? Because many people think that paying a minimum bill means they will be fine. Well, here’s a big wrong thought. Consider again the terms and conditions listed in the credit card manual.
Set Up Minimum Payments Carefully
Minimum payments result in the remaining unpaid debts exposed to interest. So paying a minimum does not mean the rest will be billed without interest. But it will make you forced to pay interest that is not small in number.
Even the value of the payment will be even greater if there is a transaction again beyond the rest of the bill. So in the next month credit card charges will multiply in amount. This can certainly be fatal to the finances.
Therefore, pay as much as possible on credit card bills. Do not let the rest. If you have to pay only partially, pay off immediately when you have more funds. So no need to bother thinking about the interest on credit card bills.
One dangerous thing that we do not realize when using a credit card is to spend the limit. Usually credit card limit will be adjusted with our income. Sometimes even credit card limit for the amount of our income. Therefore, the use of credit cards up to the maximum limit will cause problems in the future.
Healthy finance is a finance that uses credit in the maximum limit of 35% of total income. Therefore, limit your credit card usage to a maximum of 35% of earnings. Even if it is necessary to ask the credit card to give a minimum limit so as not to be tempted to use the limit entirely.