Saturday, August 16, 2008

Using Credit Card Wisely

Using Credit Card Wisely

There are thousands of us who like my brother trying to figure out how to pay the credit card bills. Until it came to him that he even tried to escape or hide from his credit bank. It's really important to be well educated before applying for credit or making any other major financial decision.

Using credit cards wisely will help avoid a number of monetary problems and aid to create a good credit rating. Credit can be a valuable resource when it is used sensibly. Credit card can definitely provide you in many convenient ways to pay for goods and services, to take advantage of large purchases, secure debts, establish a credit rating and use goods and services while paying for them.

However, there are also things that you need to bear in mind when using a credit card.

The key is "do not spend more than you can afford". This entails that you need to do budget. For without your budget, using your credit card may result to impulse buying, overspending, comparison shopping, and often used only to take advantage of the card's bonuses or perks.

Thus, in order to use your credit card wisely you need not to use your credit card to make everyday purchases nor using your credit card to buy things you can't really afford. Another thing is getting into the habit of making minimum-only payments will only make you pay the interest and not the credit itself. It would only make you pay your credit for 20 years. So, you have to pay as much as you can.

Bottom-line is, make a decision when trying to purchase items you need and not the wants, so that in the end, you won't end up winding your hair because of the volumes of bad credit cards bills and legal letters to pay debts in your bill box.

No comments: