MANILA, Philippines – The Credit Card Association of the Philippines (CCAP) has urged shoppers to use their credit cards with caution this holiday season.
“Using a credit card for holiday shopping is truly a practical and convenient choice, but cardholders need to be smart and safe,” CCAP spokesperson and executive director Alex Ilagan said.
Ilagan said to prevent overspending using a credit card, shoppers should make a list in advance, set a budget, and only charge within your means.
“Credit cards are an ‘avail now and pay later’ facility…they should not be treated like ‘free money’,” Ilagan said.
“As such, the same budgeting rules apply: compute how much you can realistically afford, and use that number as your guide.”
CCAP said December is the strongest month in consumer spending using credit cards issued by CCAP member banks.
Data also showed that consumer spending using credit jumped 6 percent from P445.12 million in 2012 to P471.76 million this year.
“The great thing about credit card shopping is that many banks provide zero percent installment promos on purchases that would otherwise leave a dent in your wallet…The ability to spread out expenses over a period of time has proven to be very useful for countless consumers,” Ilagan said.
As the incidence of credit card theft during the holidays is higher, Ilagan offered these safety tips:
For those with multiple credit cards, bring only one or two
Avoid lending out credit cards, especially to children or friends
Put your card away after each use
Avoid putting it in your pocket
Don’t linger at the cashier with your credit card exposed
“We’ve had reports of people standing in line at checkouts for the sole purpose of memorizing credit card numbers,” he warned.
Ilagan also urged consumers to pay their balances in full come January to avoid incurring interest charges.
“That's the great part about setting a budget and charging only what you can afford, you’ve managed your Christmas expenses, and start the year debt-free,” he said.
source: www.abs-cbnnews.com
