Credit card usage: We all fear the burden of debts. Listen attentively, and I’ll show you how to trick the system.
First of all, let’s just say we define a specific shopping day for you to go and spend a reasonable amount of money. Let’s say you have only EGP100 to get an EGP200 vase (we keep the figures simple to better grasp the idea).
So now you’re EGP100 short, right?
Well, if you have a credit card and – like me – dislike being indebted, you can use it like a salary advance. All you have to do is get the opening date of the credit card statement.
In other words, each bank promises you of 50 – 57 days grace period on your purchases, but here’s the real deal: If I am the bank, and I informed you that the credit card statement starts on the 1st of each month and the closure of each statement would be the last day (29 – 30 – 31) of the month, upon receiving the statement, you are required to pay on the 27th of the month.
In figures, if the statement for May – printed on the 31st of May – shows you are debited by EGP100, you will have to pay the said amount on the 27th of June. This gives you 27 days grace period. What if you purchased a pen for EGP100 on the 1st of May? This means you are required to settle the pen’s cost, purchased on the 1st of May, on the 27th of June – TADA! 57 days grace period!
So, if you understood the system (each bank has a different opening day of credit statement, so make sure to check it) you now can use this as an interest-free salary advance!
Now, regarding that vase, you can purchase it on the opening day of the credit card statement (in the above example it’s the 1st of May) and promptly pay off part of the credit card balance with the EGP100 in hand, then wait for your next paycheck to pay the other EGP100 before or on the last day of the credit card statement ending – in the example: 27th of June is the designated pay day by my bank.
Bottom line: Save the opening day of your credit card statement on your calendar as “Shopping Day” and split its cost between your current paycheck and the upcoming one. Of course it is also important to budget, limit purchases and pay off your credit card debt, especially if you don’t have your normal income coming in.
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