Credit Cards

There is a positive and negative side to almost everything in life and the same goes for credit cards. They are a very convenient, readily accepted means of payment and some of them offer great rewards however they can cause us to enter debt if we are not careful.

Credit card debt is very real and the convenience of swiping that plastic to pay for this and that will cost you dearly if you are not wise in your spending. Personally, I had way too much fun with my credit card when I first got is and I paid the price (yeah, I had a little debt). That situation helped me to understand that I needed to be more responsible in my spending.

My suggestions when obtaining a credit card:

1.     Do not accept a limit that is more than half of your salary unless it is the minimum limit for the lowest card – my philosophy is, if I can’t comfortably clear off this card in one or two months (max) then I am either not financially ready for a credit card or I need a lower limit.

2.     Pay for the purchases you have made on time – unpaid purchases attract interest and while the rates are not too steep, continuous payment of finance charges only makes the banks richer and leaves you with less.

3.     Leave it home every now and then – this is so that you don’t get too accustomed to the convenience of the swipe. Unless you are financially comfortable, try to limit credit card use to not more than three times per week.

4.  Most importantly, know your limits and spend wisely!