Bangs with Credits Card !!!!

A few months back,one of my friends called me to inform a happy news -He received a credit card
!!!…for the first time in his life, and the excitement was in his words,…..”I too was worthy for a credit card,Vow!.”
He just wanted to make the full use of this Rs 30K additional credit potential he achieved unexpectedly. So after a series of thoughts, he decided to purchase a“Mutual Fund” through this,and gave a technical explanation to all of us-”If you are holding at a credit possibility like this you should explore the investment possibilities of it. Since the credit card swipe offers a 50 days free credit and the earning potential of top rated MF was more than 3% per month(was true at that time), you will be earning a free 3% profit in real terms”.The idea seemed to be of true worth and everyone was convinced with this. Then purchased a MF worth Rs 30000,the full credit limit of the card,from an NBFC.
….then his first bill came within 20 days,and the bill amount was nearly Rs 32500/- When inqiuired in the Call centre he was informed that the additional charges were finance charges for Cash(since it was a finance company), overlimit charges(since the approved credit limit of Rs 30k has been exceeded), annual charge of the card and service tax,cess etc.Also not 50 days because he purchased on the last day of billing cycle!!! The total loss aaccording to his technical calculation was 8.3% for 20 days,which no MF could give!!!
He was so frustrated with this incident and didn’t want to use the card again.Only thing he could do now was to extend the payment of the bill amount onto the last due date.So on the due date he gave a cheque for the full amount in the bill and settled it off.Though he lost some money ,he took it as a learning lesson to get rid of this plastic money, without harming him further.
…then after a month his second bill came,and he had a due amount of Rs 750!!! When inquired he was informed that though he has given the cheque on the due date,the amount realized from it was after 3 days and they will be considering only the realized date-So its your late payment Charge!!!!!
(Further, the mutual fund value also declined to more than 50% after the stock markets broke down to more than half.)
The morale which he learned from his experience:
1)Don’t’ use credit cards blindly-use it only after learning its terms and conditions,charges,billing cycle etc
2)When you are investing in risky assets, Invest only your surplus funds.