It’s convenient to have a credit card. You can use it for different expenses. Whether you shop from a local store or buy items online, a credit card is useful. The only problem is you might go beyond the limits. You keep maxing out your credit limit and have a hard time paying your debts off. It could be due to your spending habits. Here are some of them and what you can do to change them.
Read the terms and conditions
Before you even begin to open a new credit card, read the terms and conditions. Understand what you’re going into. Check the fees. If you think the terms are unfair, find other options. It’s even better if you consult with a finance expert first. You will make the right decision after the consultation. If you reside in Kent, you can work with Fingerprint Financial Planning. You need someone with a local perspective to help in decision-making.
Think before buying anything
Consider using your credit card only if you don’t have enough cash with you. It’s also suitable for online payments. However, if you can use a cash or debit card instead of a credit card, use it. You don’t want to spend money you don’t have. Also, before buying anything, think hard. Buying items during a promotion period might be tempting, but you might regret that decision. You buy things you don’t need.
Pay the full amount each month
Your credit card statement might tell you that it’s okay if you only pay the minimum amount required for the month. The truth is you could end up with high interest rates and charges if you don’t pay the amount in full. It will carry over to the next month, and it keeps growing. Make sure you have zero balance before the next billing cycle begins. Otherwise, you will get used to the idea of only paying the minimum amount required.
Avoid cash advances
Use your credit card only for payments. Don’t use it to borrow money. Cash advances have a higher interest rate. You can take out a personal loan instead. If not, try to live within your means. You can’t rely on your credit card for cash advances just because it’s possible.
Track your credit card usage
The good thing about using credit cards these days is that you can easily track your usage from your phone. It allows you to know how much is available on your credit limit. You can stop spending if you realise you already spent a lot. You might also get notifications on recent expenditures.
Hopefully, you will be responsible for using your credit card. You can’t let it bury you in debts. Remember that many people ended up with financial woes because of credit card issues. Always think of your credit card as the last option. If you don’t have cash or you can’t pay using a debit card, it’s the only time to consider using your credit card.