In this world of fast transactions and digitalization, it is not shocking that people are now more inclined on using plastic money than plain cash. A cashless economy is a new step towards fast growth but the overuse of plastic money is forcing people to move towards a debt trap. There are a number of advertisements that are promoting the use of plastic money and people are luring on using them in priority without thinking the consequences in the coming future.
Debt Trap? Well, this is the modern day trap that most of us fall into knowingly or unknowingly even without actually understanding its rear consequences. Here, below are few tips, in general, to avoid falling into the debt trap with your plastic money.
- Use liquid cash only: When you use only cash for all your necessities and shopping, you truly realize how much cash you are spending and this will psychologically make you spend less than spending with your plastic cards.
- Never cross the limit: Spend from what you earn, does not mean that you can spend all that you earn. It is very necessary that you save a portion of your incomes and make it a habit. This will one day save you from becoming indebted.
- Minimize the number of your credit cards: Having a number of credit cards is not a matter to be proud of, it only makes you all the more indebted and your chances of falling into the debt trap certain. Try enduring with one card and use that only in cases of real emergency.
- Never use your savings to pay your credit cards: Credit card payments are to be made from your earnings and not from your savings. You should not allow your balances exceed the permissible limit. If it ever happens, go in for settlement options, but never ever break your savings to pay for your credit cards.
Above are few tips that can help you from falling into any kind of debt trap. Trying implementing the above tips in your regular transactions.