Credit cards have long been used as a source of easy cash, with people on fixed incomes often viewing them as a key to access more money than they normally have.

Credit cards are financial instruments that are only of benefit to those individuals who know how to use them wisely.

Using credit cards wisely can improve a person’s credit rating in the United Arab Emirates, and many credit cards also come with offers of rewards.

However, the biggest problem associated with credit cards is that they are easy to mismanage, with many people using them to make purchases that are so expensive that they cannot really afford to pay them back.

Many people do not take such repayments into consideration before being buying items that they cannot really afford and do not really need.

Avoiding the purchase of overly expensive and non-essential items is one of the simplest ways to avoid overburdening yourself with credit card debt.

Credit cards should only be used to buy items that you will be able to easily pay for at a later date in order to avoid getting into debt.

Another way of staying out of debt in the UAE is to only make use of the balance transfer facility offered by many credit cards when it is absolutely necessary.

When transferring one credit card’s outstanding balance to another, it is crucial to make sure that the transfer is actually going to work in your favour financially by ensuring that it has lower interest rates than was the case with the other card.

If this is not the case, then cardholders will only end up getting into even more debt as a result of the high fee for balance transfers.

There are a number of UAE credit cards that provide a balance transfer facility but actually charge customers a very high fee for the service, so users need to ensure that they avoid this scenario.

Another mistake that credit card users need to avoid is giving their card to friends or family members.

Many people allow their loved ones to make use of their credit card only to end up regretting it when they end up in financial trouble as a result.

There is always the chance that someone will use a credit card in an irresponsible manner and make payments that suit their own needs.

The result can be a credit card bill that increases the financial burden on the primary cardholder and can cause them to become caught in a debt trap.

The only sure way to avoid this scenario is to never give your credit card to other people.

It is also important to carefully examine all of the terms and conditions associated with any credit card and ensure that you understand every point.

Special attention should be paid to how the interest on a credit card account is applied and charged, and when those rates might increase.

The responsible and sensible use of credit cards can prevent users from getting into debt in the UAE.

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