Credit Cards Are Somewhat Notorious For Giving Us The Ability To Run Up Debts Without Really Realising What We' Re Doing

Category: Finance, Credit.

While there are some very organised people out there who open every piece of mail as soon as it arrives, and take the appropriate action straight away, many of us don' t quite take the same approach. This, is not really, however a good way to deal with things, and here are three reasons why.

In our time- pressed lives, opening mail may not be a priority, and especially in the case of credit card statements which are usually easily recognisable from the envelope, they may sit unopened all through the month until the next one arrives. Credit cards are somewhat notorious for giving us the ability to run up debts without really realising what we' re doing. Opening your statement each month as soon as it arrives helps us to keep a realistic impression of how much we' re spending. Because it's so easy to spend when you' re within your limit, there can be little to stop us from making impulse purchases or even using the card to pay essential bills from time to time. If you don' t check your account very often, it's all too easy to receive a nasty surprise, with the debt being a lot larger than we anticipated. We tend to think that if somehow our card details find their way into the hands of criminals, then the account will be cleaned out straight away. The second reason that you should examine your statement each month is to detect any possible fraud before too much damage is done.

Not all fraudsters work in this way though, with more subtle attempts to' fly under the radar' by only withdrawing small amounts. By checking that you recognise each transaction on your statement, you stand a much better chance of minimising the damage caused identity theft and fraud. By doing this they are less likely to be detected, as the card issuers' monitoring systems might not spot the fraud as easily. Thirdly, your statement will include details of any charges or changes made by the credit card issuer that you might not have been aware of otherwise. Or, a change to the minimum repayment may mean that you need to change the amount you automatically pay each month- only by checking your statement will these circumstances be made clear, especially considering the legalese used in the typical credit card terms and conditions leaflet! For example, a change to your statement date may mean that your regular payment now misses the due date, leading to late payment fees. So, even though dealing with regular mail such as credit card statements may seem like a chore, and something that we can neglect in favour of more interesting or important activities, reading your statement could actually end up saving you time and money, and it really only needs to take a few minutes a month!