Credit cards are not destructive, nor do they want to get you. In fact, they can make you – and your credit rating – a lot of good. If so, why are so many people mired in debt? Making foolish decisions about your finances, here's how.
If you're new to the idea of owning a plastic friend, here are a few tips to keep in mind:
1. Be responsible.
– Having a credit card means having a certain amount of purchasing power at your fingertips, as this small plastic card symbolizes. As we all know from comics and films about Spider-Man, great responsibility comes with great strength. Make sure you have the things you need or for emergencies. Use as many cash or debit cards as possible. It would be better if you just saved up for items that you could not afford, or even refused to buy.
2. This is not free money.
– Having a credit card is not a reason to spend money freely. When you buy something by charging your card, you simply borrow money from the card issuing company. Remember that you still have to pay for it at the end of the month, so make sure you spend less than you can afford to pay at the end of the month.
3. Pay the full amount on time, every time.
– One of the ways in which credit card companies make their mega-bucks is by accruing interest to you. They also charge an additional fee for late payments, financial fees, and other penalties for an action. Do not give them this opportunity to earn more money for you. Instead, make it a habit to pay your balance on your credit card in full and on time every month, and this will be a great note in your credit history.
But what if you are already head over heels in credit card debt and drowning fast? The first thing you should do is discuss your current circumstances with your credit card provider. If you are currently in a difficult time, such as dismissal or illness, you can ask your credit card provider if you can use any plan they have in case of difficulty in which they allow you to suspend payments from at least six months to of the year. Since you may have other financial obligations that fill your plate, you can also get a credit consultation and get advice on how to solve your financial problems. As a rule, debt management is available to many debtors who are in trouble when your representative can agree on payment terms with your creditors. In some cases, a debt consolidation loan may work in your interests, as this means getting a large loan to fulfill all your debts.