Thursday, February 24, 2011

Yes, I Am Prepared


You never know what lies ahead in life. But you can always have an idea about what it could be and be prepared for it. Better, you can have multiple options and have plan a, b and so forth ! The idea is, we should always be prepared for whatever life has to offer and should be ready with a plan.

STOP !

This is not my way of living life. I prefer to face it when it comes. Come on, how can we be prepared for every turn of life ??? Let it come and I will face it. I never want to waste my time prepare for something I may never ever face ! And other than money matters I don't think I have any control over other situations in life.

Life is not an exam comes with syllabus ! Even if it is, most of the time, the real questions will be out of syllabus. And life doesn't give you a chance to skip one question, and you can not argue that you are not expected / prepared / warned / told about it.

Think about this moment. Prepare for this very moment. If you can do something, do it to make it better. Never worry or think much about something you may never going to face. Happy living :)


Monday, February 7, 2011

I Got A Credit Card :)

I been using credit card for a while and am comfortable handling it. ie, I never let the interest add up and make it a point to pay the full amount before the last date ( though occasionally I needed to slip this rule). When my cousin called me to say he got his first credit card and he is excited about it, I got to warn him.  At least he should not repeat the mistakes I made...

There is no two opinion about its versatility. It is very useful. Need not carry cash, can use it online or on phone. You can buy things even when your bank balance is zero. It is especially useful when travelling to another country, because we need not go for money exchange ( though our bank will charge a fee). Being accepted even in small towns makes it more attractive.

The stand-by period ( from the day billed and the day to make payment ) of 20-50 days is tempting. If planned properly we can have it over two salary dates ( I never tried it, though ). Most cards offer points for usage which can be redeemed for gifts or vouchers later. And a few offer cash back ( still better ).  So choose the card wisely.

Also for security, it is advised to go for a photo card and the moment you get it, sign it. If someone steals your card and use it, you don't need to pay it. You can challenge the payment to the bank saying that it was a fraud usage. And it is the RETAILER who needs to make sure that the card is genuine. If he misses to verify the photo or signature, that is his problem. 

Have an Internet transaction password. It will ensure one more layer of security. Also it is advised to memorise the CVV no and erase it from the card. If you have more than one card, be cautious with this step !

The interest they charge is huge. Though it may vary from 3 to 3.5 %, it is calculated MONTHLY. When it is calculated annually, it will go up to 35-40 % which is far high compared to loan. So if you have a huge outstanding, it is even recommend to get a personal loan to clear it. It costs 16-20 % or something, which is still much less. And they calculate the interest for the FULL AMOUNT and not outstanding. If your bill was 10,000 and you made a payment of 9,000, they will calculate for the full 10,000 and not the outstanding 1,000. So be careful.

Even EMI option is not very attractive either. And most importantly, the bank will not let you close it before the tenure. They will ensure that they will squeeze the maximum profit from you... And also have a clear picture of processing fee, if you are going for EMI.

Never ever use it to withdraw cash either. It is also charged at the same rate, huge rate.

If used wisely, it can be healthy too. For cash back cards, you can really earn money every time you use it. 

Make sure you will not fall to temptation and use the card every time you see a sale sign ;) And never let the  card go to wrong card. My card was sent to my room when I was away at native. By the time I got it, it was used by my roommates to buy TV, DVD and stand ! Though it was a 'sweet' misuse, every time it may not be...

Happy card days... Make sure it will not make you yell ;)