The three credit cards system is a powerful personal credit cards administration system.
1. Charge your fixed payments (i.e. handphone, insurance, utilities, subscriptions, Astro, etc.) to your 1st credit card.
2. Charge your ad hoc payments like shopping, eating out at restaurants, groceries, petrol, etc. to your 2nd credit card.
3. The 3rd card is for emergency.
The rule is, you only bring your 2nd and 3rd cards out. You always keep your first card in your drawer.
Why bother to use three credit cards?
Because,
1. Once your segregated the two types of expenses, i.e. fixed payment and daily ad hoc expenses, into separate credit cards, it is much easier to monitor your expenses.
You have separated your expenses into fixed expenses and discretionary expenses. You can just cut away your 2nd credit card and stop all your discretionary expenses at crunch time.
2. Credit cards companies are helping you to do a very neat accounting records of your fixed payments and day to day expenses. So that in a glance, you know how much is your monthly fixed commitments. It helps to control you from adding such monthly financial commitments.
3. The 3rd card provides a contingency credit needs, i.e. hospitalize, before you can get anything from your insurance company. It also serves as a back up card when a merchant could not process your 2nd card.
Three good reasons.
12 amazing action plans avoiding credit card debts mess...
Part 1: Preventing credit card mess (1)
Part 2: Preventing credit card mess (2)
Part 3: Preventing credit card mess (3)
A refined article of twelve action plans in preventing credit card mess published in EzineArticle.
5 comments:
This is the best & honest financial planning website. I accidentally encountered your website while surfing for info on credit card management. I love your easy to read in-depth articles.
Hi mr,
Thanks for your kind words. It is encouraging and I truly appreciate it. :-)
Just saw your comment today...
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Keep up the good work.
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