A colleague of mine is continually harassed by credit card sales agents. They call him with alarming frequency and then try to coax him with various baits - balance transfer facility at a lower interest rate, no card membership fee, no annual fee, free points if he takes card, or even a cash back scheme.
His rationale: he does not need a card.
And, believe me, he is quite convincing in his logic. Here are some of his common arguments.
Ever tried paying bus conductor, taxi driver or an auto rickshaw driver by card?
Attempted to give your maid her salary by card?
Love to have a cup of tea at a roadside stall? Or even a juice? Or even buy a packet of cigarettes from wayside shop? Sorry, cards are not accepted! Outlook Express: http://www.hardwaresoftwarearticles.com/archive/index.php/f-12.html
Want to buy a bunch of flowers? Hard cash please!
He claims that for most of his transactions, he requires just plain paper money - plastic does not work.
But, I am not convinced.
I definitely need a card and here's how I use it to manage my money.
The 4 laws of money management The small payments are endless
Of course, my good old sabziwala, with fresher veggies than supermarket, will not entertain my plastic money. Neither will small, local grocery store.
But when I do drop by at supermarket or department store, card sure is handy. Ditto at petrol pump.
Actually, in a city, chances are that you can use a credit card to pay up to 75% of routine monthly expenses.
Often, bill may just be a few hundreds and usually an odd sum. Have you ever had experience of having to pay, say $100, but only be in possession of notes of $100 denomination?
In such a situation, card makes it a smooth transaction. I need not bother about hunting for change or filling my wallet with coins. Security: http://www.hardwaresoftwarearticles.com/archive/index.php/f-15.html
How to start saving The convenience is unmatched
If I have to make some urgent payments for which I don't have cash, I need not make endless trips to ATM.
Nor do I have to run to a bank for a personal loan.
Or, take case of a medical emergency. At such times, a card is a blessing.
A debit card with a difference The big ticket expenses
Suddenly had urge to buy that plasma screen television? After all, what could be better than watching a good movie, on a wide screen on a rainy day?
Why wait for next paycheck? Use your card.
This is how it works. Banks generally prepare bills a couple of days before bill date.
Purchases made at fag end of billing cycle or at immediate start of next billing cycle will give you a longer credit line. Which means you get more time to pay bank. Internet Explorer: http://www.hardwaresoftwarearticles.com/archive/index.php/f-11.html
Say your next billing is from 21 September to October 20 and your due date to settle bill is November 11.