There’s something very charming and alluring about one’s first ever credit card. The feeling of excitement at receiving and beholding a credit card is one that’s unique in life and most people won’t wait long to start using it. Credit cards are the kings of convenience, however they are also double-edged swords, which can hurt you more than they benefit you if misused. Here are a few principles that must be adhered to for a credit card to be beneficial.
Aim to Pay Balance Offs Monthly
The key to not amassing unmanageable levels of credit card debt is through striving to make sure that balances are paid back monthly. Aiming to pay balance offs monthly is a great way of keeping one step ahead and avoiding the need to pay a massive sum when your payment date is due.
Never Miss a Due Date
Speaking of your payment dates, these must by all means be adhered to. You should always pay the minimum amount – at the very least – by the due date. Failing to do so will incur penalty charges and compromise your credit score, which will make future borrowing more difficult.
If you find it too difficult to pay the minimum amounts on due dates, then it is possible that you’re amassing too much from your credit cards on a monthly basis. Using up more of your credit card then you can handle is a major warning sign that you need to slow down on spending.
Set Up a Direct Debit
A good way to help ensure you never miss due payments is setting up a direct debit. By setting up a direct debit you will be making payments automatic, which will go a long way to preventing slip ups from occurring.
Don’t Carry It Around Everywhere
If you are a bit of a spendaholic it might be a wise idea to refrain from carrying your credit card around with you everywhere you go, as this will inevitably only lead to overspending and accumulating more debt than you can handle.
Simply leave it at home and avoid the temptation to use it in needless situations.
Maximize Your Income
The best way to avoid credit card debt is simple: maximize your income to make sure you can afford your lifestyle and have the resources to pay back what you need to.
Living within your means is obviously the secret to keeping on top of your credit card and it is obviously easier to live within your means the higher your income is.
Maximizing your income means improving earnings to the best of your skills and ability, while also ensuring other avenues within your life are generating the full amount of money they should be. If you’re a business owner for example, explore whether or not you’re owed money in the form of tax refunds through the help of firms such as RIFT.
The more money you have coming into your life, the more able you will be to afford credit card repayments.