Managing Your Credit Card

Credit Cards are one of the most misused financial tools today. There are a lot of people falling into the trap of misusing their credit cards and often end up having a huge debt. This is actually where the problem starts. With the huge debt that one has to manage, the income that they have is being used to pay for debt and leaves the individual unable to pay for their immediate needs.

Being in a burden of debt pushes the credit card holder to use the card for immediate needs which increases the amount of debt. It becomes a cycle for the individual which makes the debt harder to manage. Here are a few tips on how you can manage your credit card.


  1. Never use your card unless you can pay for it in cash.

One rule of thumb that is definitely effective is do not spend using your card if you don’t have enough cash to pay for your purchase. Your credit card should help you for convenience. You need to make sure that your reason for using your card is because of not bringing a large amount of cash in your wallet or purse. Be sure that you can pay off the amount in your card soon as it becomes due.

  1. Avoid using your card for cash advances.

When you make cash advances in your card, you are actually borrowing money from the bank. And with all loans, an interest is being charge for the amount you borrowed. Cash advances often charge high interest rates that become hard to pay especially if you don’t have enough cash flow to cover the cash advance made. It would be wiser to look for a cash loan that yields low interest rates.

  1. Pay more than the minimum amount due.

Once you have noticed that you have an amount in your card that you know you can’t pay the entire amount due, stop using it. Your next move would be to pay more than the minimum amount due to ensure you are paying off the debt slowly.