Worst Times to Avoid for Credit Card Spending

Caution SignIf you own a credit card, it’s very important to be aware of your spending and avoid traps that can easily lead you to bad debt.  But did you know that there are worst times to be using your credit card?  In some instances, your credit card will not be the best means to deal with the situation.  Consider the following situations.

1. Paying for a medical bill.

Using your credit card to pay off medical bills or hospital expenses is very risky.  Keep in mind that if you fail to pay your full balance before the due date, you will automatically incur extra interest rate fees.

Furthermore, people should make an effort to negotiate their hospital bill especially if they are in a financial crisis.  Most hospitals have a special provision for patients with financial issues but if you charge it instantly to your credit card, there’s no way you can negotiate and reduce the costs.

This is why acquiring a health care or medical insurance is recommended as it protects you and your family from the threat of debt during times of emergencies.  Relying on your credit card will only lead to debt build-up especially since a hospital bill can balloon up in a matter of days.

2. You received a cold call from a vendor.

Telephone marketing is a popular method of promotion that many businesses use to acquire customers.  You might receive a call from a vendor offering different kinds of products and services – from real estate to computer software, and every possible buy in the market.

Promotional deals are also common from telemarketers and you might be told that the special discount is only for the first five customers.  It might be tempting to simply accept a deal and charge the purchase to your credit.  But is this really a wise move?

Obviously, using your credit card to buy from a vendor over the phone is not smart.  First, you did not have the chance to shop around and compare your options.  Second, responding to a sales call does not give you the opportunity to evaluate the product.  Third, you do not really know if the person over the phone is from a legitimate company.

Some vendors may even be so bold as to ask for your credit card number over the phone.  Be warned.  You should never give your credit card number or any personal information to anyone who has called you or contacted you in another way.  The same principle applies when you get a call from a person, claiming to be a representative of a charitable organization.  While you can easily donate a few dollars to charity through your credit card, it’s best not do it in this manner.

3. Paying taxes with your credit card. 

If you use your credit card to pay your tax, there is usually a fee which can range anywhere from 2% or higher whether you pay manage to pay back your balance in full or not.  And if you can’t pay in full, of course, you will incur interest rate charge as well.  If paying your taxes is a problem, get in touch with the IRS and try to negotiate for a suitable repayment plan. 

 

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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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