How to Stay Out of Credit Card Troubles
Credit cards have essentially replaced the use of cash in our society. They are used everywhere these days. You can use your credit card to go to the movies, dinner, shopping, club hopping, traveling and just about anywhere that you can imagine. The lure to use your credit card has grown more and more over the years. Credit cards can be a great tool if used properly. However, when abused credit cards can get you in a lot of financial trouble. Staying out of trouble with your debit card is as easy as following a few basic guidelines.
Do not spend more than you can afford. This is the very most basic guideline to follow if you want to be a responsible credit card user. There are many people who apply for credit cards and use them recklessly. Reckless spending patterns are very easy to get into with a credit card. Most of are used to spending physical cash from our pockets. The day starts and you have $35 in your pocket. You spend $12 at lunch and put $20 of gas in your car. This leaves you with $3. At the end of the day your realize that you have spent $32 since you physically started out with $35 and are left with $3. With a credit card it is very easy to keep on spending. People a lot of times do not realize how much they have spent on their credit cards until the bill comes. I know because this has happened to me before as well. If you have a $10,000 limit and $4000 monthly income before you know it you will have racked up a bill if you are not careful. Since you are not actually physically seeing your money disappear it becomes very easy to start spending. However, if you have a plan and stick with you will be all right. A person with a $4000 monthly income should only spend what they plan on repaying at the end of the month.
Another good way to avoid getting into credit card hot water is too leave your credit cards at home. The old saying “out of sight out mind” is so very true in many situations. If you leave your credit card at home and not take with you too the mall with your friend, chances are you will not end up spending any money on things that you do not need or can not afford. Spend cash if you plan to have a night on the town. How many times have you gone to a club, had a few drinks and ended up spending more than you planned on your credit card? I know it has happened to me before. Alcohol lets free on inhibitions and many times the credit card spending will start. If you leave your credit card at home and spend cash, you will be limited to spending a certain amount. In the morning when you wake up you will certainly be thanking yourself for following my advice.
Log on to your online account frequently. As I mentioned previously, it is very easy to forget how much you have spent on your credit card. Most, if not all, credit card issuers have an online account for you to log on and check your statement on a regular basis. Most online sites will even track your spending in real time. In other words, if you spend $8 on lunch at the Chinese restaurant and then go log on to your account an hour later the charge will show up. Pay pal has a service that will send you an email or text message when a charge is made to your Pay Pal issued credit card. This is a very good way of keeping track of your spending. Other credit card issuers should also offer customers the same feature. Come home to your computer, go through your emails and see exactly how much you have spent.
Credit cards used responsibly will benefit anyone. There are often emergencies that come about where a credit card comes in handy. Sudden car repairs, doctor’s expenses and home repairs can easily and quickly cause you to end up in a financial fix. If you have a credit card and have used responsibly you can get yourself out of that bind quickly. However, if you have overspent your credit limit you might continue in a financial bind should you not have any other way of obtaining emergency money. Do not spend more than you can afford. Leave your credit card at home. Go online frequently to check your account. Stick with these guidelines and you will definitely keep out of financial trouble with your credit card.
Credit cards have essentially replaced the use of cash in our society. They are used everywhere these days. You can use your credit card to go to the movies, dinner, shopping, club hopping, traveling and just about anywhere that you can imagine. The lure to use your credit card has grown more and more over the years. Credit cards can be a great tool if used properly. However, when abused credit cards can get you in a lot of financial trouble. Staying out of trouble with your debit card is as easy as following a few basic guidelines.
Do not spend more than you can afford. This is the very most basic guideline to follow if you want to be a responsible credit card user. There are many people who apply for credit cards and use them recklessly. Reckless spending patterns are very easy to get into with a credit card. Most of are used to spending physical cash from our pockets. The day starts and you have $35 in your pocket. You spend $12 at lunch and put $20 of gas in your car. This leaves you with $3. At the end of the day your realize that you have spent $32 since you physically started out with $35 and are left with $3. With a credit card it is very easy to keep on spending. People a lot of times do not realize how much they have spent on their credit cards until the bill comes. I know because this has happened to me before as well. If you have a $10,000 limit and $4000 monthly income before you know it you will have racked up a bill if you are not careful. Since you are not actually physically seeing your money disappear it becomes very easy to start spending. However, if you have a plan and stick with you will be all right. A person with a $4000 monthly income should only spend what they plan on repaying at the end of the month.
Another good way to avoid getting into credit card hot water is too leave your credit cards at home. The old saying “out of sight out mind” is so very true in many situations. If you leave your credit card at home and not take with you too the mall with your friend, chances are you will not end up spending any money on things that you do not need or can not afford. Spend cash if you plan to have a night on the town. How many times have you gone to a club, had a few drinks and ended up spending more than you planned on your credit card? I know it has happened to me before. Alcohol lets free on inhibitions and many times the credit card spending will start. If you leave your credit card at home and spend cash, you will be limited to spending a certain amount. In the morning when you wake up you will certainly be thanking yourself for following my advice.
Log on to your online account frequently. As I mentioned previously, it is very easy to forget how much you have spent on your credit card. Most, if not all, credit card issuers have an online account for you to log on and check your statement on a regular basis. Most online sites will even track your spending in real time. In other words, if you spend $8 on lunch at the Chinese restaurant and then go log on to your account an hour later the charge will show up. Pay pal has a service that will send you an email or text message when a charge is made to your Pay Pal issued credit card. This is a very good way of keeping track of your spending. Other credit card issuers should also offer customers the same feature. Come home to your computer, go through your emails and see exactly how much you have spent.
Credit cards used responsibly will benefit anyone. There are often emergencies that come about where a credit card comes in handy. Sudden car repairs, doctor’s expenses and home repairs can easily and quickly cause you to end up in a financial fix. If you have a credit card and have used responsibly you can get yourself out of that bind quickly. However, if you have overspent your credit limit you might continue in a financial bind should you not have any other way of obtaining emergency money. Do not spend more than you can afford. Leave your credit card at home. Go online frequently to check your account. Stick with these guidelines and you will definitely keep out of financial trouble with your credit card.
Labels: credit card, credit card advice, credit card issuers, credit cards
Credit Card / Financial news blog post by Todd Holliday at 7:12 PM 