The use of credit cards in the country is increasing day by day. Although it makes life easier, it can become a burden if used unconsciously.

A little carelessness can put you in a debt trap. Not paying bills on time, overspending, using multiple cards or withdrawing money—these are all factors that can quickly lead to debt. Therefore, it is important to use it wisely.

Credit card users get stuck with some mistakes. Here are six such mistakes.

According to the Central Bank report, credit cards are widely used in 11 sectors within the country. These sectors include department stores, retail shopping, paying bills for various services, cash withdrawals, medicines and pharmacies, clothing shopping, money transfers, transportation expenses, various business and professional services, and paying bills for government services. In Bangladesh, the then ANZ Grindlays Bank (now Standard Chartered) introduced the first credit card service in 1997. Currently, about 40 banks in the country are offering credit card services.

1. Expenses outside the budget

Many people spend beyond their plan in the lure of reward points and offers. Experts advise that you should not spend more than 30 to 35 percent of your monthly income on cards. Spending more than your budget will increase the pressure on you.

2. Pay only the minimum amount

If you only pay the minimum each month, the interest keeps increasing. The annual interest rate increases rapidly. This causes the debt to swell quickly. So, pay according to your ability, not the minimum.

3. Reliance on multiple cards

Using multiple cards hides the real debt, making repayments more complicated. Using another card to pay off one card is more dangerous. Avoid this.

4. Late payment of bills

Late payments can result in penalties, a drop in credit score, and loss of interest-free period. Therefore, the deadline cannot be neglected.

5. Withdraw cash from the card

If you withdraw money from an ATM, interest is immediately charged. The interest-free facility is also canceled. You should not withdraw cash unless it is urgent.

6. Getting caught up in various offers
No-cost EMI or Buy Now Pay Later, such offers may not always be profitable for you. Hidden charges and compound interest increase the debt.