One gets too excited when he receives his first or new credit card. What first comes to his mind is that latest gadget he just in a shop a couple pf days ago. Yes, true. Credit cards are meant to extend your shopping expenses but this plastic card is also the same reason why a lot are burdened financially.
There actually nothing wrong owning several credit cards so long as you can manage them. The problem at times is that they are used on things which are unnecessary so by the time you needed it on something real important, you`ll realize you`ve already maxed it out.
If you are guilty of this, then here are some reminders you need to take note of:
Don`t use your plastic card for daily purchases. Basic necessities like your food or car gas should be purchased on cash. If you make this as a habit then you surely will be into a deep debt. When you go shopping for your daily needs, better leave your card to avoid temptation.
Try not to make minimum payments on your credit card dues. When you do so, the interest charge increases thus making you more indebted. If you can`t make the full payment for the month, try your very best to pay as much as you can of course without compromising the family`s budget. Using your credit card on things which you actually can never afford is an easy way to say hello to a load of debts.
Never ever close a credit card without understanding its full effect on your rating especially with card which has some balance left in it.
Use your credit card to buy things you can`t afford. Living a borrowed lifestyle is the quickest way to get into debt. If you can`t afford a purchase today, chances are you won`t be able to afford it tomorrow, or even next month.
A wise cardholder knows the definition of a want and a need. Credit cards should only be used for your needs, besides you still can survive without those wants. As much as possible, try to stay on the range of 30% credit limit. This will help you keep a good score and lower down your bills for the month.
But the most important thing, don`t spend more than you earn. If you want a car and you can`t afford it then wait for the time until you are capable of having one. It is better to wait than get stressed and depressed and even lose your remaining assets due to unpaid and accumulated debts.