Having credit can be a blessing and a curse. Credit can help you get the things that you would not normally be able to afford. However, credit can also load you up with more debt than you may be able to handle. If you do decide to buy things on credit, you should also be prepared to pay the bills that come along with having credit cards. Not paying off your credit cards bills when they are due can do terrible damage your financial future. Follow these tips in making sure that you do not get into credit card trouble in the future.
Dont Have Too Many Credit Cards
Make sure that you do not have too many credit cards in your name. Even though it is important to have a certain amount of lines of credit open in your name, you dont want to overburden yourself with credit cards. Having too many credit cards can lead you to overusing those cards. Even if you only put a small amount on each card, you will still have a large amount of debt when you count up what is on all the cards together.
Dont Rely On Credit
Make sure that you are not relying on your credit cards to help you pay for things like your monthly bills. You can occasionally get a larger item on credit (thats what credit is there for), but make sure that you dont use credit to pay for all of your day to day and monthly expenses. In most cases you should use cash to pay for your regular expenses. If you do use credit make sure that you keep track of how much you are spending and what you are spending it on.
Pay Off Your Monthly Bills
Paying off your credit cards monthly will make sure that you do not fall into the debt trap. Make sure you at least make the minimum payment on your credit cards every month. However, know that only paying off the minimum will not help you when finance charges come about. If you can, pay off more than the minimum payment each month. This way you will not be paying off finance charges and late charges for years to come. If you are able to, pay off the entire balance of the credit card each month. This will show that you do not use up too much of your credit and you pay your bills on time.
Use Credit Wisely
Most importantly, use your credit wisely. Do you really need that new big screen TV? If you can only afford to buy it using credit, and are behind on your monthly bills, you may want to double think whether or not you really need it. Credit can be great for those who use it responsibly and pay off their bills on time. However, if you do not use your credit wisely and do not pay off your bills on time it can hurt your credit in the long run. Make sure that you are knowledgeable about your credit and how you are using it and you will be able to use your credit in a wise and safe manner.
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