It’s common for people to have one credit card. After all, it can be your saving grace when you have high bills to pay or need to pay out a large sum in one go. But you need to be so careful that you are not flashing your plastic too often. After all, it’s easy to turn the benefits of a credit card upside down. In fact, here are some ways to use credit cards without building up debt.
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It’s time to set a spending limit on the card
When you have a credit card in your pocket, it’s easy to go a bit crazy with spending. After all, with endless money to spend, it’s tempting to make some substantial purchases. But if you do start spending like crazy, you will end up running into debt. After all, you might not be able to afford to pay back the money on the card. Therefore, to ensure you can’t get pin happy with your credit card, you should set a spending limit on the card. That way, you won’t be able to go over that amount. And it can help you to keep to a specific budget. You can call the card provider to set a spending limit on the card. And that way, you won’t run into debt with your piece of plastic!
Pick one which has a good interest rate
It’s also important that you check the interest rate before you start spending with your credit card. After all, you don’t want a card which will see you having to pay back twice or even three times the amount you originally spent. Otherwise, you will soon run into debt with your credit card. After all, you might struggle to be able to afford the repayments every month. You want something which is viable to pay back easily. And that way, you can build up a good credit rating while using your card. A lot of people make the error of going with the first card they are offered. But there are a variety of credit card options available, so make sure you compare first to find the best interest rate. And that way, you can ensure you don’t end up with hefty bills every month!
Keep it for emergencies
When you have a credit card, it’s easy to get reliant on the piece of plastic. In fact, you might start using it for making small payments when you are out and about. But while it might be handy, it’s easy to fall into money trouble if you do use it like your debit card. After all, the amounts you are spending can soon add up and then get to a total that you can’t afford to pay back. So you might end up building up the interest and then falling into debt. Therefore, you should keep the card for emergencies to ensure you don’t overspend. Only use it if you have to pay for something substantial. And that way, you can make sure you don’t run into money trouble.
Remember to opt for a card which gives you air miles and money off vouchers. That way, you are making the most of the benefits of having a piece of plastic!
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