The specter of insurmountable credit card debt keeps many people from using credit. While it is good to be aware of the dangers of misusing credit cards, one should remember that with proper forethought credit cards can greatly improve one’s resource pool. Here are a few tips on using credit cards to maximum advantage.
The nice thing here is that monthly budgeting can be done wholly from one balance statement. Purchases can be tracked, trends noted, and adjustments made for the next month. Additionally, many cards offer cash back, points, or some reward system to encourage this use. If the balance is paid each month one can gain the benefits without the interest charged. But be careful only to charge what you can pay off in a month!
To limit the impact of impulse buying, keep cash alongside the plastic, and try to only use cash when making purchases outside the monthly budget allowance. If you don’t have a monthly budget, then that is a good place to start managing credit card debt.
Another good strategy is to avoid carrying more than one card. Keep the others in a filing cabinet, safely away from cash registers.