How to Use a Credit Card and Stay Away from Debt
Make sure you pay your credit card on time to stay away from accumulating debt. In case the debt piles up you may have to make lots of sacrifices. So if you’re not in debt yet read on to avoid it completely. If you want to buy a new car or a flat screen television, open a savings account and accumulate money for such purchases. Do not carry the card when you go shopping to resist temptation. Only use the credit card to make planned purchases.
Make sure you pay the amount you plan to use every month with the next coming paycheck. This is helpful in maintaining a budget and having a good credit score. This only works if the amount used up from the credit card is paid each month. Get to know your credit and even financial limit. Without your consent, they should not raise the credit card limit.
If you don’t carry cash around, don’t carry your credit card too, get a debit card. You can buy using the debit card as it accesses the amount in your bank and even financial account. However, avoid making huge purchases that will exhaust your money in the bank. If you are tempted to buy a luxury item and cannot resist it, freeze the card. In case you maintain a balance you will have to pay interest for things that do not exist. Business and education expenses and medical emergencies can be paid using credit cards. Form a habit to use cash but not credit card as it will help you to know where your money goes. Your spending behavior even financial can be managed if you establish the difference between your needs and your budget.
Avoid getting a credit card if you are one of those people who buy things even when they have others or things they don’t need the people known as shopaholics. In case you are also one of those who get excited at seeing things they never planned to buy, and after buying them you feel guilty, you should avoid credit cards. You don’t need a credit card if you have items you bought and have not used or worn them and you lie about your spending habits. Never use the money in your credit card, to pay even financial interest.
However, you should pay the amount owing to avoid accruing interest. Seek immediate help if you notice you don’t have the money to pay for the credit card. If the credit card is new make sure you understand even financial terms and the rewards program. With these steps you will not fall in debt, or you will be able to pay your debt monthly. Emergencies and important purchases are only what you should use your credit card for.