It seems that even though much of our current economic troubles were caused by runaway credit spending, credit card use, debt relief and debt modification are still ongoing issues. Here are updated pointers on how you can use credit cards wisely.
Cut down on how many cards you have. There’s a simple question to ask yourself: Can I still pay for all of them? Calculate how much you can pay without having to do a debt merry-go-round. The more honest you are with yourself, the more prepared you will be. But if you can afford it, the safest is to have two cards.
Don’t max them out. Keep your credit card use to around 30% of your credit limit, or to how much you can comfortably pay within three months, or even pay in full.
Minimize on your payments. If you can pay in full when your paycheck comes in, do so. Credit cards are meant for you to be able to purchase something you need or want, with the intention that you can pay it off at the end of the billing cycle, or within three to six months. Anything more than that is an invitation for a financial nightmare.
Keep track of your card usage. While it’s true that you may not be buying expensive single items, if you buy too many items, then it amounts to the same thing. For this reason, it’s important to itemize all your purchases, particularly if you have dependents sharing your account.
Negotiate for a better billing cycle. It’s always a good idea to get your bill near your salary payout. This way, you can immediately set money aside for it.
Don’t let your credit cards control you! Sign up on the box at the right to see what your debt relief and modification options are.
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