Credit cards can be difficult to control. In most cases, people who are in debt usually have these plastic cards as one of the culprits. These cards were created to entice us to buy things and avail of professional services that are beyond our current financial capabilities. Even when you cannot afford it at the moment, you can always swipe your card to get what you want. While the whole concept obviously does not promote the best financial habit, there are ways for card holders to stay away from credit card debt.
First and foremost, if you have existing credit card debt, you need to pay them off. There are debt relief options that you can use like debt consolidation and debt settlement. Choose your option based on how much you can afford to pay towards your credit card debt. Ignoring your debt is a very bad idea because it is notorious for accumulating very easily because of the high interest rate and the finance charges. Work on your debts and pay off what you owe.
When your current credit card debt is paid off, you don’t really have to cut them all of. If you wish to get rid of the high interest rate cards, you can do so but if you know how to use your cards properly, the interest rate will not matter at all.
After using a credit card to pay for something, you usually have a grace period between the date of purchase and the due date of the billing statement right after. If you pay for the purchase in full within this time frame, you don’t have to worry about the interest rate. That means, you really just pay for what you got - no additional fees. This habit will not only help you keep payments to a minimum, it will also show that you are a responsible credit holder.
Another way to use your credit card wisely is to limit its use. Ideally, you should only use your card for emergencies. If that is the case, make sure you define just exactly what an emergency is. Will it be strictly for health reasons only? Try not to use it for basic expenses because that will be very hard to control.
When you use your cards double check the print out before signing. Encircle the amount to check if it is the right amount. Keep your copy so you can double check the billing statement once it comes in. If there are any discrepancies from what you remember, investigate and report it to the credit card company.
If you have to use it for expensive purchases, set up a payment plan to make sure that your balance will not grow further. Keep that plan as short as possible. Also, keep the price from going more than 30% of your card’s limit.
Hopefully, these rules will help you get the best rewards for your credit cards. It is very important to practice smart spending habits and try not to be deluded into thinking that you can pay for things that are actually more than what you can actually afford.
First and foremost, if you have existing credit card debt, you need to pay them off. There are debt relief options that you can use like debt consolidation and debt settlement. Choose your option based on how much you can afford to pay towards your credit card debt. Ignoring your debt is a very bad idea because it is notorious for accumulating very easily because of the high interest rate and the finance charges. Work on your debts and pay off what you owe.
When your current credit card debt is paid off, you don’t really have to cut them all of. If you wish to get rid of the high interest rate cards, you can do so but if you know how to use your cards properly, the interest rate will not matter at all.
After using a credit card to pay for something, you usually have a grace period between the date of purchase and the due date of the billing statement right after. If you pay for the purchase in full within this time frame, you don’t have to worry about the interest rate. That means, you really just pay for what you got - no additional fees. This habit will not only help you keep payments to a minimum, it will also show that you are a responsible credit holder.
Another way to use your credit card wisely is to limit its use. Ideally, you should only use your card for emergencies. If that is the case, make sure you define just exactly what an emergency is. Will it be strictly for health reasons only? Try not to use it for basic expenses because that will be very hard to control.
When you use your cards double check the print out before signing. Encircle the amount to check if it is the right amount. Keep your copy so you can double check the billing statement once it comes in. If there are any discrepancies from what you remember, investigate and report it to the credit card company.
If you have to use it for expensive purchases, set up a payment plan to make sure that your balance will not grow further. Keep that plan as short as possible. Also, keep the price from going more than 30% of your card’s limit.
Hopefully, these rules will help you get the best rewards for your credit cards. It is very important to practice smart spending habits and try not to be deluded into thinking that you can pay for things that are actually more than what you can actually afford.
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