7 Effective Tips To Make Credit Cards Work For You Not Against You

While it is true that credit cards come in a handy when we are caught cashless on certain instances; it is also wise to take note of the fact that excessive use of credit cards will only lead us to go straight down the drain of having a bad credit history.

Therefore, it’s important to be smart when it comes to using credit cards and managing your debts associated with them so you do not find yourselves in trouble in the long run. It’s so easy to acquire debts through credit cards and extremely hard to get out of it once you have been eaten by it alive.

Here are some basic tips to consider when it comes to managing your credit cards wisely.

1. Only use one card

Normally, most people would use cash advances from one card to be used in paying the debt in another. This will only make matters worse with your financial condition; not to mention the hassle of managing multiple credit cards.

2. Pay in full the monthly balance of your credit card

Given that there could be some inevitable circumstances that may arise; have your debt paid within a maximum of two months and no more, no less.

3. Look for other options

Opt for another alternative if you find yourself always maxing out your credit limit each month. A much wiser alternative would be to apply for a personal loan which charges lower interest rates compared to credit cards.

4. Grab hold of a card calculator

Grab hold of a card calculator if you deem that you can only pay the minimum amount required for each month. This way, you will determine as to how long would you be able to pay off your debt. Furthermore, take the time to talk to a financial advisor who will help you manage your credit card in a much healthier way.

5. Be very cautious of cash advances

It is true that we enjoy interest-free days with our credit cards; but, it definitely does not cover cash advances. It is to be noted that no amount of payment will ever pay off cash advances as long as there is still an outstanding balance on your credit card; meaning, any balance you have on your credit card must be paid off first. Also, your benefit of having interest-free days will most likely be forfeited until you pay off your cash advances.

6. Always keep the fees down

On one hand, you must learn when to use credit cards and avoid getting hooked with unnecessary swiping; this way, you will only have a lesser amount to pay for your monthly dues. On the other, you must keep it a point to always pay in full and on time to avoid piling up of finance charges which will eventually be the one to kill you financially.

7. Look for alternatives in making payments

To date, people have the option to pay either on-phone or online. These routes are obviously cheaper compared to paying over the counter.