Excessive debt in credit card is one of the common reasons why people file for bankruptcy. Almost everyone let these credit cards take control of their finances, and they do not know how to get out. You can keep this situation from happening to you. Here are the dos and don'ts of using a credit card:
Dos:
Limit your number of cards.
Use your credit card in emergencies only. Stop charging it for additional purchases.
Watch out for limit increases
Pay your credit card balance in full every month. If it's not possible, try to stop using your card until your balance is already paid in full. Also, pay more than the minimum due to reduce your balance until it is paid in full. It is supposed to be a loan that must be repaid.
Pay on time. You have to allow for enough mailing time to make sure that the payment will reach the company or bank by due date.
Know your credit card well (like grace period, fees, etc.)
Don'ts:
Do not get more cards to avoid falling deep into debt.
If you can wear, drink, or eat it - don't charge it!
Do not spend the maximum amount offered.
Do not ignore your credit card because it will not go away.
If you pay late, there will be fees that will be charged to you - sometimes even more than $25.
You will fall into impulse buying if you are not aware of these important things.
Shred your receipts after you have already compared them to your billing statement for security.
Review your card's monthly statement for completeness and accuracy to avoid identity fraud.
Do not be caught up in a bad credit card cycle - it can lead you to a very dangerous situation. Be responsible with your credit card. The reason why people get into trouble is when they use a credit card irresponsibly on a day to day basis. Remember that your credit rating will also be affected if you are unable to pay it on time. Just make small purchases like groceries or gas so you can pay it off the next month. If you need to charge a large purchase, create a definite plan on when and how to pay it in full.
Stephen Lee is the author for aboutcreditcards.info that is geared toward helping people choose and compare credit card offerings. You can view more articles about credit cards by visiting here.
Article Source: http://EzineArticles.com/?expert=Stephen_F._C_Lee
Dos:
Limit your number of cards.
Use your credit card in emergencies only. Stop charging it for additional purchases.
Watch out for limit increases
Pay your credit card balance in full every month. If it's not possible, try to stop using your card until your balance is already paid in full. Also, pay more than the minimum due to reduce your balance until it is paid in full. It is supposed to be a loan that must be repaid.
Pay on time. You have to allow for enough mailing time to make sure that the payment will reach the company or bank by due date.
Know your credit card well (like grace period, fees, etc.)
Don'ts:
Do not get more cards to avoid falling deep into debt.
If you can wear, drink, or eat it - don't charge it!
Do not spend the maximum amount offered.
Do not ignore your credit card because it will not go away.
If you pay late, there will be fees that will be charged to you - sometimes even more than $25.
You will fall into impulse buying if you are not aware of these important things.
Shred your receipts after you have already compared them to your billing statement for security.
Review your card's monthly statement for completeness and accuracy to avoid identity fraud.
Do not be caught up in a bad credit card cycle - it can lead you to a very dangerous situation. Be responsible with your credit card. The reason why people get into trouble is when they use a credit card irresponsibly on a day to day basis. Remember that your credit rating will also be affected if you are unable to pay it on time. Just make small purchases like groceries or gas so you can pay it off the next month. If you need to charge a large purchase, create a definite plan on when and how to pay it in full.
Stephen Lee is the author for aboutcreditcards.info that is geared toward helping people choose and compare credit card offerings. You can view more articles about credit cards by visiting here.
Article Source: http://EzineArticles.com/?expert=Stephen_F._C_Lee
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