Having a variety of busy and also quite high financial activities often makes us so in need of various facilities in conducting various financial transactions. Time becomes very important, where everyone expects all his affairs can run smoothly and in accordance with expectations. Technology can certainly be a reliable thing to get these various facilities, various financial facilities can be accessed easily with the help of current technological advances.
One of the banking facilities that is widely used today is credit cards. Various reasons are the cause of the high use of plastic money in the midst of society. But among all these reasons, ease and convenience of transactions is the most frequently cited reason. Credit cards make various financial transactions easier and more practical, not just direct transactions, even all online transactions can also be accessed by using a credit card.
Its use as a global payment instrument that is accepted throughout the world, is one of the added values that makes it easier for business people and those who like to travel when conducting financial transactions. Credit cards are accepted everywhere, and that makes them so needed by many people.
The Right Benefits
But even so, in reality, not everyone can make the most of a credit card. There are many people who use credit cards inappropriately, so it’s not a convenience that will be obtained when having it, but it could end up with a number of problems in finance. The use of credit cards that are not right, can occur due to a lack of understanding of the benefits or due to the failure of someone in managing their finances as a whole.
If used appropriately, credit cards will actually provide many benefits and also ease in conducting various financial transactions. Not only as a facility, but credit cards can even provide many benefits for its users. Various features on a credit card will certainly be very useful if used appropriately.
Unlike other credit facilities issued by banks, the use of credit cards can certainly be done at any time, even only when we really need it. This is what makes many people use credit cards as an emergency fund when their financial difficulties. The use of credit cards as an emergency fund is a legitimate thing to do, as long as this action is accompanied by calculations and also careful consideration. This means that the use of a number of these funds has also been followed by a payment plan in the coming day.
There are many benefits you can get when using a credit card as an emergency fund, some of which are as below:
When in need of an emergency fund, we will certainly take into account the source of funds and also the amount of interest that will arise from these funds. This should always be considered because a large amount of interest will certainly be very burdensome and increase the amount of debt significantly.
The use of credit cards as an emergency fund will be very helpful, especially if it turns out that some of the funds will only be used in a short time. That is, we do not need to bother to apply for a number of loans to banks or other financial institutions that will take up a lot of our time and energy.
Currently, there are many banks that provide credit card interest is quite low, even some of which only range below 3%. This will certainly be very helpful and we should make it into consideration when we need some emergency funds.
Fixed Installment Facility
Emergency funds are of course not only in the form of cash funds, but we may need a number of emergency funds for various other purposes, one of which is as medical expenses at the hospital. A number of these medical expenses could be in large enough numbers, so we have difficulty when going to pay it in one month the bill. Leaving it without being paid off at once, will certainly expose us to a number of flowers.
Various emergency bills like this can be overcome by using the fixed installment facility found on the credit card, in which we can pay in installments over a certain period of time with 0% interest. At present, almost all credit card issuing banks have fixed installment facilities on the credit cards they issue. Some banks provide a 0% installment period for the first 3 months if you choose a longer installment period we will be charged a mild interest of 0.99%. However, there are some banks that even provide a 0% installment period for the first 6 months.
The use of fixed installment facilities will greatly help us to overcome financial difficulties during an emergency. This, of course, must be done with a number of calculations and also the right considerations, lest we have difficulty in paying a fixed amount of installments in the future.