Convenience of credit card but should use carefully

The first thing is to know exactly how the cards work. Usually there are two main types of credit cards on the market, those that give you up to 55 days interest free if you pay your bill by the due date of each month, and those in which interest is charged immediately but at a lower interest rate. Both require a minimum payment each month, but often the minimum payment barely covers the interest on your bill. The cards are not structured to help you repay your debt, and if you do make the minimum payment, it may take years to pay your bill.

There are also two other types of cards, which are often confused with credit cards, even though they are technically quite different.

Credit cards are offered by groups such as American Express and Diners Club. They look and feel like ordinary credit cards but there is a big difference. With a map of your account must be paid in full each month. There is no credit and if you do not respond to a payment of heavy penalties may apply. Credit cards often have unlimited, so you can spend as much as you want, as long as you know, you have e money to pay the bill at the end of each month.

Debit cards and also the impression that credit cards. but they did not really give you credit. It linked to your bank account, so that when you spend money on your debit card, it is withdrawn from your account. Many people make fun of debit cards, in part because you use your own money and partly because they do not usually give you reward points. But look at their advantages: you can not go into debt for things you can not afford, and no high interest rates. For those who like the convenience of credit cards, hut to have difficulty to manage, debit cards are a much better choice.