Credit cards were first introduced in the 1920s in the United States. At first people called as plastic money. Later plastic money or credit cards attracted the attention of people around the world.

Then in 1985, introduced a credit card with an exclusive holographic sophisticated. Hologram on the credit card was made with the visible laser beam three-dimensional shape. In addition, the credit card given the security features of other, including special codes in the magnetic lines form behind him to mark the invisible visible under ultraviolet light. There is also a credit card owners are given the image. The objective is to avoid fraud and misuse of credit cards.

Although using credit cards more freely and easily, but to remember is to use a credit card just like you owe. When buying something, you do not need to spend money but enough to swipe a credit card. Purchase transactions are conducted in a period of one month accumulated a total of bills to pay. At a certain date each month to the due date is later than the date you paid the bill. Previously, invoices will be sent, which contains details of the transaction date, the total bill and the minimum amount to be paid.

Credit Card Benefits

The credit card will be very useful especially in times of emergency when we do not have the cash. For example, when I had to pay the hospital. Credit cards give up to one-month grace period for repayment. So if we do not have cash, we are still able to pay hospital fees and credit card bills paid after receiving a salary or if we can have payments for some time.

By the time you have to transact online, one of the most popular payment is by credit card. Another benefit is when you have to go to a place that is not wise to carry cash.

You can also take advantage of promotions from credit cards to get discounts at a particular restaurant or while shopping at a particular place. If the purchase is important and necessary course you will benefit from discounts obtained. But this needs to be examined properly. If not, will make us be wasteful to buy things that do not need or dine at the restaurant for being attracted to the discount given.

Credit Card Danger

Because of its simplicity and does not need to spend money when we buy something, often we are too busy to shop regardless of how much total money that was spent. Moreover, because do not use cash, making the total purchases do not seem large compared with the cash shop. We seem to still have a lot of money for unused cash.

However, if you do not pay in full the total bill is ready for danger awaits you. You are able to pay only the minimum amount which is usually for 10% of the total bill. However, shortcomings will be counted as debts to be paid with interest the very large. As a result, the total to be paid will be very large and will continue to bloom, so the amount to be paid will become swollen.

If you have not paid off for some time, the bank will bring in debt collectors who will violently force you to pay these arrears. Many credit card users end up having to sell his property to pay off the debt that swelled due to credit card interest. Pelu known, that the interest rates most credit cards than other types of credit.

Credit cards are also often used in fraud. Someone or some institution might fool you with a variety of ways to get your credit card number. Next, they will make a purchase or making money with your credit card number which will be charged to you as a credit card owners.

Tips Wise with Credit Card

Flexibility and variety of benefits offered by credit card partially offset by the danger either temptation to buy and live outside the ability. It is also the danger of abuse and credit card fraud. Given the danger behind the use of credit cards, then the wise thing what can you do?

*Do not have too many credit cards
Having many credit cards will cost you to pay annual dues and make you tempted to spend more. A maximum of 2 credit cards that must be owned. If you have more than that, you should immediately close the other credit cards. Considerations in choosing a credit card which will be maintained including interest rate credit cards, credit cards and limit the benefits offered by credit cards really useful for you.

*Budget funds for credit card
In preparing the budget, enter the maximum amount of funds that may be used by credit card.

*Recording purchases using credit cards
With a record will help you find out how much you should pay so that will help you to ‘brake’ next purchase. This record can be matched with invoices to make sure you actually made the purchase.

*Try to always pay the full bill
This is useful so you do not burdened by a very large flowers. Do not be tempted to just pay the minimum bill. If you already have a mortgage or credit card debt, prioritize earnestly to immediately pay off your debt by being more frugal. For example, by reducing the visiting cafes, shopping or eating out. If you are boarding or renting a home, consider whether you can move to another place cheaper.

*Avoid using credit cards to withdraw cash
Credit cards can indeed be used to withdraw cash at an ATM, but it is not free. You must pay interest on the cash withdrawal value even higher than the rate for spending.

*Beware of credit card fraud
Standby credit card fraud increasingly diverse either by phone or Internet. So, keep careful not notify the credit card number, expiration date, or other information to strangers. Do not lend your credit card to someone else.

Do not let your finances get worse with credit card debt. Use credit cards wisely so that your finances remain strong.

To control the personal resources and family can be a particular challenge. Credit or debt have seemed the easiest solution to overcome the financial problems quickly. You can use the debt as an asset, but if not careful can lead to painful consequences.

For some other people, they always try to find a larger income to overcome financial problems. Financial experts say that to overcome the financial problems associated with awareness of where the source and expenditure of money and a willingness to make informed decisions. Therefore, solutions to overcome the financial problems is to make a budget.

Develop Budget

Creating a budget is not difficult to learn. One of them is to make a list of income and expenditure list. Then keep the expenditure does not exceed the income, as the saying goes big stake than the pole. By creating a budget will make your life more enjoyable and rewarding. Anything you can enter in the budget?

* Revenue
The first you need to make a list of income. Generally that will go into this list are salary, interest from savings accounts, deposit interest, and so on. Take note that only the regular income you’ll get each month.

Avoid entering uncertain income or non-routine within your budget. Some income must not include overtime, bonuses, prizes, commissions, even though THR. The financial consultant has warned that a plan based on income sources of uncertainty can make your debt. However, if you get any time uncertain income, such as overtime pay or bonuses, then you can choose to use such money to treat yourself and your family, travel, or give donations.

* Expenditures
Compile a list of expenses is not as easy as making a list of income. You might try taking down every expenditure to see the financial waste that occurs. However, you should be able to make a list of monthly expenses if you know your shopping habits. Some important things that must exist in the list of expenses such as basic needs. This includes food, shelter, and clothing.

Do not forget to include a periodic routine expenditures such as spending per three months, as of mid-annual, annual and other periodic expenses. Example for home insurance payments, vehicle taxes, or income tax. However, to put it in the monthly list, you need to divide that amount by the number of months suitable.

Then for each expense, you make weighting or priority scale. If you find your expenses amount greater than or equal to the income, then you can eliminate or delay some expenses that you have registered. It would be very helpful if you divide every expenditure by weighting the absolute necessity, the needs of the doubt, or just a luxury that want to have. This method will be helpful, if at any time your income decreases because of changes in circumstances. You can quickly get rid of some who still doubt the need or a luxury only.

*Savings
However, one of the most important in saving the expenditure list. Although many people may not think of saving as an expense, it is wise if you budget some of your monthly income for emergencies or special purpose. At least, you have to set aside 5 percent of your income has been taxed to save. If not, you have to make the steps that hard. Get rid of credit utilization, set back your lifestyle, and consider your basic needs. Strive to enter savings in your monthly budget.

Your success in carrying out your budget largely depends on how realistic the budget. The idea is that the list reflects your personality and choices but still realistic. If you create a budget is too small and is unable to meet the need of households within one month, then certainly all that you’ve set up will not run.

Debt

Many people think that loans can be a form of debt finance solutions. However, uncontrolled debt can derail your efforts to live according to your income.

Certain types of debts can be an asset. For example the long-term debt for the purchase of assets such as houses continue to increase in value can be useful. In contrast, credit card debt used to finance day-to-day lives can be disastrous. Hold to the principle not to pay even a dollar of interest expense or credit card. It is a credit card can ease your life, but always be careful when using it.

If you have a credit card, paying off credit card bills immediately before the interest arises. Financial experts recommend paying off debts credit card even if it means you have to sacrifice your savings. Think about it logically, that it does not make sense to get into debt with high interest savings while maintaining a low interest rate. This is similar to waste. Beware of the burden of credit card interest charge!

Financial conditions remain Keeping Safe

Make a budget and get out of debt you need to do seriously. Once you get out of debt credit card or other short-term debt which is not an investment, then you can start trying some of the following practical steps:

* Reserve Money
Always have the financial reserves of at least six months of income. This reserve could be a savings or other investments easily redeemable if needed immediately. If the situation changes, for example, you get fired, then you will have enough money for at least six months while you apply for a new job. Conversely, if you get a raise, tabunglah half of the salary increase.

*Big Debt
If you want to invest in debt, then try to carefully count the number of installments. Installment debt should not exceed 30 percent of the salary her husband. If you are a spouse who works full, simply calculate the mortgage debt of the husband’s income alone. Then enter into the budget you have created to evaluate whether it was reasonable for the debt or credit.

You can reduce borrowing costs by paying significantly higher down payment. But you have to save for that far in advance to include them in your family budget. Low initial cost may mean that credit costs lower.

* Family Communication
Another success factor in conducting financial planning is good communication between family members.

Develop and implement the budget may be the only tool that can help you to overcome financial problems. Avoid debt, and if you already have credit card debt, paying off immediately. Always put your funds to save and invest. Thus, you are able to successfully overcome your financial problems.