Introduction to Use Credit Card Responsibly
While a credit card can be one of the most convenient things in the world, using it irresponsibly can have disastrous effects. One reason for credit cards resulting in ever-increasing debt is that people when using cards instead of cash find it difficult to retain clarity on their fiscal judgment and tend to overspend.
However, if you want to use credit, it is not necessary to abandon your credit cards; all you need to do it to use them responsibly focusing on the flexibility of cash flow and perks of card membership. Some tips:
Pay off Your Statement Dues in Full Every Month
The only way to prevent yourself from drowning in credit card debt like the average American is to ensure that use your credit card just like cash.
Spend only as much you can afford to and make it a point to settle your statement dues in full every month. Paying the steep APRs applicable to revolving balances is plain stupid and a surefire way of getting mired in debt.
According to result, revolving debt outstanding in November 2019 was a mammoth $1.086 trillion with the average card balance at $6,629.
Pay Your Card Dues on Time
Paying late, even by a few days, attracts a very high late payment fee, sometimes even as high as $39 that is charged by the Capital One Walmart Rewards MasterCard. On top of that, the APR swings into play on the outstanding balance till such time you make the payment while in the meantime the late payment has harmed your credit score.
You can either mark your calendar so that you don’t miss the payment date or better still arrange with your bank to pay the dues by auto-debit to your account every month before the due date.
Check Your Credit Card Account Online Regularly
If you use your credit card instead of cash, you would be chalking up a large number of transactions every month that can be difficult to keep track of.
It is a good idea to register and log in to your credit card account online regularly to check the transactions and the balance. You can also easily spot inaccuracies and any case of unauthorized use that need to be reported immediately.
Checking in once every week is a good habit and can help you to stay within your budget. If you are overspending, you should lock up your card for the rest of the month.
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Use the Card Only for Major Purchases
When you use your card to pay for all your expenses, it can be very easy to ignore small purchases, however, over time; they can mount up considerably and throw your budget out of gear. It can be a good practice to use the card only for big-ticket purchases and pay for other expenses with cash.
Credit cards are very useful but only when you use them with discipline. By using cards responsibly, you can save yourself the stress and embarrassment of not being able to pay off your debt but also take advantage of the various perks and benefits that offer amazing savings and conveniences.