Credit Cards, Use Wisely

credit-cards

A credit card is a great convenience. With just one thin square of plastic, you can make big purchases without having to bring cash, even pay for it over easy on the pocket monthly installments at no interest. We can use it to pay for items we bought online. We can bring it with us when we travel, no need for travelers check or cold cash to travel the whole trip’s expenses. We can also borrow money from it for short term needs. Best of all, we have a safety net if ever there is an emergency situations that require large payments.

Yet some people view credit cards with suspicion, thinking it may lead their finances astray.

The truth is our credit cards can work for us depending on our spending habits. I have here some steps on how to use credit cards wisely.

• Charge only what you can afford to pay. Experts say our total payments for debts; credit card bills should not more than 15 to 20 percent of your take home pay. Set monthly limit of charges and don’t go beyond this amount.
• Pay your credit card bill on time, and as much as possible, in full. In order to avoid finance charges. But if we can’t pay the minimum amount due.
• When we receive our bill, compare this against your copies of sale slips for your purchases. To check if there are discrepancy.
• Safeguard your credit cards. Treat it like cash and make sure it doesn’t fall into the wrong hands.
• If you find yourself in debt trouble, call your creditor right away and own up to your situation.

A simple note; just avoid over spending to menimize our monthly bills.

Tags: Use Credit Cards Wisely

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