The festive season is approaching and that means people will be making heavy use of their credit cards -- up to 30% more than at other times of the year, according to TMB Analytics.
All that extra spending means that many credit cardholders will need to work harder to avoid bad habits that can lead them into debt trouble, say analysts at the TMB Bank affiliate.
TMB Analytics estimates that total spending via plastic will increase from 6,100 baht to 8,100 baht per card on average by the end of December.
There will be an influx of at least 35 billion baht into the economy by the end of the month as a result.
For consumers who want to ensure they don't encounter problems, TMB Analytics has identified five habits consumers should avoid:
1. Using credit cards instead of cash for the sake of convenience, thinking that this method makes it easier to control one's total spending.
2. Exceeding credit cards' credit limits. Doing so will require you to pay higher interest rates than normal.
3. Using credit cards because of their promotions such as giveaways.
4. Making late credit card payments because you will not only pay higher interest but you will also have a bad record at the Credit Bureau, which will negatively affect you when you ask for loan.
5. Making only the minimum payment because doing so can result in cardholders building up excessive debt and interest burdens.
TMB economic analysts suggest that keeping records of total spending and constantly reviewing these records can help credit card users avoid these traps.
TMB Analytics also warns holders to evaluate their available credit before using their credit cards.