There is little doubt that your credit card is an excellent financial tool. If you use it properly, it remains your best friend but if used the wrong way, it can drain out your savings and become a nightmare for you. Here are the four ways that could transform your card to a financial monster.
1. When you fail to pay the minimum monthly amount due in time
You should know that credit card companies profit through the interest they charge on your monthly and total dues. They want you to pay the minimum amount due as mentioned in monthly statement by the due date mentioned therein. This gets adjusted against the purchases you would have made with your card.
2. When you miss making payments
Late payment is not the same as missed payment. Late payments may fall behind one to three days to at least a week. But missed payments are carried over to the next billing period making the minimum amount due bigger plus total amount due still higher.