Don’t fall into a credit card debt hole – tips to stay financially safe

Tengrinews.kz - What risks come with using a credit card, and how to avoid financial losses? The Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market told about this.
What risks exist and how to avoid them
Debt repayment period
It is worth repaying the debt on time. There is a grace period when it is possible to return the money without overpaying. The main thing is to pay off the entire debt before it ends. Usually it is 30-60 days. It is worth finding out the exact end date of the grace period and setting up an automatic payment or reminder so as not to forget about repayment. If you do not pay the required amount on time, the bank will start charging high interest, which can significantly increase the debt.
Withdrawing cash from a credit card
You should not withdraw cash, as this is often one of the most expensive transactions on a credit card. The bank will charge interest from the first day and also charge a commission. It is better to use a credit card only for non-cash payments, and a debit card for cash withdrawals.
Transfer from a credit card
You shouldn't transfer money from a credit card. Transfers to other cards or accounts are not subject to the grace period, so interest is accrued immediately. It is better to use a debit card or other payment methods for transfers and payments to avoid additional expenses.
Bonus programs
Many banks offer cashback, discounts and bonuses for paying with a credit card. It is worth taking advantage of bonus programs. This will allow you to return part of the money spent or accumulate points. However, before using the bonus program, you should carefully study the terms of accrual of cashback, since banks often do not give bonuses for certain categories of purchases.
Credit card security
You also need to secure your credit card, as they are often a target for fraudsters.
Therefore, it is important to follow the following security rules to minimize the risk of fraud:

do not transfer card details to third parties;
use complex PIN codes and passwords;
enable SMS notifications about transactions;
pay for purchases only on trusted websites;
if you lose your card, immediately block it through the bank;
set limits on online purchases and transactions.

Planning large purchases
If you are planning an expensive purchase, it is better to make it at the beginning of the billing period. This will increase the interest-free period of credit funds. You can check with the bank on what date the billing period starts in order to use the grace period most effectively.