How not to fall into the debt gap?

When withdrawing money from an ATM, be careful what card you use. Use the debit card you received with your bank account to withdraw cash. In the case of a credit card, the withdrawal will be more expensive, with a few exceptions you pay a considerable fee for cash withdrawal and you will lose your interest-free period.  

However, current daily expenses and larger purchases are advantageous to pay by credit card, which offers an interest-free period and returns the percentage of the purchase value back to the card account. The interest-free period varies from company to company. Most of them offer 40-55 days without interest. There are also credit cards that do not have an interest-free period. If you pay the amount withdrawn from the card during an interest-free period, you do not pay anything extra. However, if you fail to return the money by the end of the interest-free period, interest will be calculated retroactively from the time you borrowed the amount.


Due date: remember it, it depends

Many Czechs are fundamentally confused about the important thing: they think that the due date is the same date when they place the order at the bank or take the postal order to the post office. And this is a mistake that can cost dearly. The due date corresponds to the date when the money is credited to the beneficiary’s account (this always applies – whether it is a non-bank loan or a telephone bill). Therefore, if the due date falls on a Monday, it is advisable to resolve the payment already on Thursday, in order to avoid late payment. If, for example, a public holiday is reflected in the deadline for sending and crediting the money, it may be almost half a week. This may be followed by unpleasant sanctions and overpricing. Because it was on various fines that dishonest firms based their activities.


Beware of blatant sanctions

debt loan

Be careful that your chosen non-bank loan from an honest company – check the company properly. The untrustworthy ones are alive directly from sanctions. They often change the terms and due dates, and at the first reminder they charge a considerable amount of delay . These predatory practices focus on people either inattentively reading the contract and failing to understand exactly when the due date is, or the mere forgetfulness. In addition, the amount of any penalties is often stated only on the Internet, you will not find it in the contract. Solid companies count on the fact that one is sometimes overwhelmed with worries and can simply forget about the installment. If the first reminder is sent, it does so either for free or only with a symbolic penalty.

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