by: Jake R Avey (articlecity.com)
|
|
|
|
Credit is 
becoming a necessity these days. Even if you can afford to pay for all your purchases in cash you wouldn’t be very comfortable walking around knowing that you have a large amount of cash with you. Credit cards can easily solve your dilemma and also makes it easy for you to track all your expenses. There are also rewards that you can earn if you use your cards wisely.
However, let’s forget the numerous perks you can get via credit card and check in with Mr. Reality: that plastic card can also make it so much easier to spend more than you can afford to pay. Here are a few tips for you to control your spending sprees and use your credit cards wisely, at the same time maintaining all the perks you can get from them:
• Pay your bills on time. Having balances raises your interest each day. The sooner you pay, the lower your balance and interest. Paying on time will also ensure that your credit scores will remain positive.
• Pay more than the minimum balance. Even if you pay the minimum, you still have a balance remaining. The more of a payment you make, the lower your monthly minimum payment becomes. If possible, pay the whole balance every month to avoid debt and bad credit.
• Need or want? It is advisable to use your credit cards for emergency purposes. However, It’s been proven by numerous studies that credit cards make people spend too much. It helps to think before making a purchase, ask yourself if it’s simply something you want or if it’s something you really need.
• Don’t get too many rewards cards. One rewards card is enough. That way, it’s easier to achieve points rapidly instead of spreading these points to several cards. Remember: the more points you accumulate, the more rewards you reap. Having several cards will only slow down your progress there.
• Check transaction fees. Transaction fees are usually 3% of your balance which can be quite high considering the amount is accumulated over time – especially if you are transferring huge amounts of money.
• If you find it hard to change your credit habits, leave your card at home when you go out or ask someone reliable to keep it for you. This can also be very helpful if you have been accumulating much debt already for it prevents you from adding more debt to your account.
• Avoid checks. Using the checks your credit card company sends you is like doing a cash advance. This can bring upon hefty fees and often, high interest rates.
Credit debt can be overwhelming and can change your life drastically. Making wise decisions concerning your credit cards can get you out of credit debt and can improve your lifestyle greatly!
