7 credit card pitfalls to avoid
News from KFMB News 8:

By Andrew Housser

Credit cards can be convenient, relatively secure, easy to use, and some even pay you back with rewards. But sometimes, those small rectangular pieces of plastic can spell trouble. Most consumers already know it is important to use credit cards wisely. Yet a misstep can result in unneeded, unwanted debt. Watch out for these common pitfalls as you use your credit card.

1. Cashing credit card checks.

It might seem like a good idea to use a check issued by your credit card company to pay off debt or make a big purchase you’ve been putting off. Here’s the catch: Credit card companies consider these checks to be the same as taking out a cash advance. Most creditors charge higher interest rates and special fees on cash advances. The best thing to do with these checks when they arrive in your mailbox is simply to shred them.

2. Making new charges on a card you opened for a balance transfer.

Transferring debt from a high-interest credit card to one with lower or no interest can be a smart move in many cases. It then can be tempting to use this new, lower or zero-interest card to make new purchases. But if you do not pay off the full amount when your promotional deal ends, you’ll be paying a high interest on the balance transfer plus the new purchases. In…………… continues on KFMB News 8

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Related News:

Argentine Tax Agents to Track All Credit Card…
News from ABC News:

Argentina just made it more expensive for its people to use credit cards outside the country, and more dangerous for cardholders who aren’t paying all the taxes they should.

One measure published in Friday’s official bulletin adds a 15 percent tax every time people make a purchase outside the country using a card issued by an Argentine bank. Another requires the banks to report every credit card purchase — home or abroad — to the tax agency.

The moves target Argentines who have discovered that by using credit cards outside the country, they can get around increasingly tight currency controls and shelter their money from soaring inflation. Purchases outside Argentina using peso-denominated cards soared 48 percent in June compared to the year before, obligating the central bank to send $ 289 million out of the country in just one month. Overall capital flight soared to $ 23 billion in 2011.

AFIP chief Ricardo Etchegaray, the government’s top tax collector, presented the moves as populist measures that would only affect the wealthiest Argentines, and mainly when they travel outside the country — a reduced group of 168,000 taxpayers who charged $ 1.5 billion in the last 18 months.

But a closer look shows the measures go much farther, giving the government powerful new tools to combat widespread tax evasion.

Tax and customs…………… continues on ABC News

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