MANAGE CREDIT CARDS WELL

 

PRANAV SAKHADEO WRITES ON CREDIT CARDS

in Times of India 16June2026 

Money matters

First understand your income and expenses.
A credit card is not an income

It is not free money

It is not a tool

If there is no discipline credit cards are dangerous.

In the wrong hands it can become debt

In disciplined hands it can reduce the cost of everyday life

Making the most of every Rupee is just part of survival

You need buffers, planning and discipline.

Do not buy something simply because a card offer is available. 

Ask yourself whether you really need it.

Financial planning should become routine

Perhaps it may be a little boring

Never miss a credit card bill

Never pay interest for credit card purchases

Never withdraw cash from a credit card

Never spend beyond the avilable limit. 

You would be charged for going above the limit

Check your credit score intermittently

Keep your credit card utilisation low

This works only with discipline

Before a large purchase compare offline and online prices. 

Check bank offers and decide.

This is how the savings add up.

Not through a magical card, but through repeated small decisions

Choose cards according to your spending

Do not spend according to your cards

Review your cards whenever there a devaluation.

Credit Card devaluation happens when your card issuer reduces the value, perks, or rewards your card offers. It means you would receive fewer benefits than what was originally promised when you had signed up for the card, making it harder to obtain the same return on your spending. 

Do not accept all upgrade offers, if the card does not suit your spending pattern

Do not count fee waivers as savings. 

Treat them as cost control

Impulsive buyers, people who don't track bills, people who spend future income and expenses, people who use EMIs often, people who withdraw cash and people who shop just because an offer exists - these categories of people should not use credit cards at all.

If you wish to hold multiple credit cards, do not start with several at once.

At the beginning of every financial year, sit with your wife or your husband, if you are married and prepare a detailed expenses sheet. If you are not married please do it alone. Factor in inflation.

The annual planning takes about two hours.

After that daily spending mostly runs on autopilot.

Money matters

 

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