Using credit cards can be a tricky business. Its important to know how to properly use credit cards so that you dont wind up in debt. There is more than debt to worry about though when it comes to credit cards. This article outlines 4 new credit card rules that will keep you safe, happy, and out of debt.
1. Get a separate credit card for online shopping
Even if you take all of the security measures you should, online shopping is still taking a risk. You want to protect your credit card information all you can. Instead of using your everyday credit cards for online purchases, get a separate card to use for only online shopping. If your credit card number and info does get stolen online and you need to cancel it, it wont affect your regular credit card.
2. Stop using your credit card for every single purchase
Using your credit card for absolutely everything is an easy way to spend more than you intended to. Use your credit card for things like groceries and clothes shopping, but dont use it for things like coffee and lunch from the corner store. Using your credit card for everything will result in higher than expected bills every single month. For things like coffee and magazines, take out a set amount of cash that you can use for those little things. Those little things really add up. Youll find that setting a cash limit and using your card less will result in money savings.
3. Stop or reduce credit card use if youre already in debt
If you are currently in credit card debt, its a good idea to use your credit card as little as possible. The last thing you want to do is rack up more debt that youll have trouble paying off. Until you are able to pay it off use cash more often. When you use cash you know you have the money to purchase the things that you want. Dont think you can never use your credit card again. Sometimes itll be a better choice to use the card. Prioritize when you will you the card and when you wont when youre in debt. If you can pay down the card by reducing your usage for a while, itll be worth it.
4. Reduce the number of credit cards you use
Using a lot of credit cards through the month can result in your spending more than you intended to. You probably wont remember how much youve spent on each card. Youll be in for a shock when the bills come in the mail. Just because you have a lot of cards doesnt mean you need to keep them all with you and use them every month. You dont need to cancel them either. Tuck them away where you wont see them all the time and be tempted. Stick to using just one or two cards and you wont be as overwhelmed when you get bills in the mail.
Having credit cards requires a lot of responsibility, but you can learn how to manage your credit card use so that you dont wind up in trouble.
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