4 Easy Tips to Avoid Overwhelming Credit Card Debts
Credit card use is one of the best examples of the cliche "we live in a plastic world." Its convenience, unfortunately, has made many people unable to manage its use and in the process ends up with overwhelming debts. Credit card payment is one of the most convenient payment methods available today, whether we buy from retail stores or online shops.
If budgeting and managing your expenses is like a rocket science, then this topic is definitely perfect for you. You're simply one of those people who honestly tried to keep your credit card use in check and yet ended up buying a lot more than what you have planned.
Do's and don'ts in managing credit card use
Credit cards are just one of the financial tools that can help us manage our expenses and help us budget our money in the process. If utilized and managed properly, you can say goodbye to credit card debts and say hello to easy financial planning. Here are some simple rules you should follow to avoid credit card debts.
- Do not use your credit card for unplanned expenses. Impulse buying falls under this category. So the next time you are tempted to buy something just because it is 50% off and you really cannot stop yourself, pay cash. If you’re buying online, use a debit system or any instant payment service solutions.
- Use your credit card for regular expenses. Regular expenses are the necessities. Some examples are car fuel, groceries, and utility payments. Using a credit card actually makes sense because it helps you schedule your payments in one go. Just make sure you schedule it to coincide with your monthly paycheck.
- Think twice when taking credit card loans. Credit card interest rates are one of the highest so it makes no sense to use them for loans unless it is a really big emergency.
- Use your credit card for zero interest purchases. Most cards offer zero interest installment payments for high priced purchases. If you are planning to buy an appliance or furniture, this is a very good method of making your purchase. You will be able to pay in installment without interest. Cards usually offer 3 to 12 months zero interest installments.
These are just the basics and you don’t even need to do calculations to do these tips. The bottom line for a debt-free credit card use: if you don’t need it don’t buy it, and if you can’t afford it don’t need it.