It’s so convenient to use credit cards for all or most of your purchases these days. With the swipe of your card you can buy about anything you need or want. Well, anything within your line of credit. There are advantages to having a credit card, such as;
* You don’t have to carry around a lot of cash.
* You don’t have to worry about not having the exact amount of cash.
* Returns are easier in most cases.
* You may find it easier to dispute fraudulent charges if your card is lost or stolen.
* They're good to have if there is an emergency.
As convenient as credit cards are, it’s also easy to get caught up in the “debt” trap. It's very easy to over spend when you use a charge card so you still need do your best to stay within your monthly budget. Here are a few tips to keep you out of the “debt” trap.
* There could be hefty fees on any unpaid balance especially if the card has high interest rates. If at all possible, it's best to pay the balance in full each month.
* If a balance remains unpaid at the end of the month, try not use the card again unless there's an emergency.
* Do not pay off one credit card with another. You may be charged some hefty transfer fees.
* Don’t use more than one credit card. It will make it easier to keep track of your spending.
* Do not accept credit cards from specific retail stores. Store cards generally have higher interest rates and when the balance isn’t paid in full at the end of the month, hefty fees will be added to any left-over balances.
* Reviewing your budget from time to time will help keep your spending in check.
For safety reasons, some people like to have one card with a low spending limit for everyday purchases and another card on hand with a higher spending limit to use for large purchases or emergencies.
For all of your financial needs contact our office at (260) 497-9761 to schedule an appointment with our advisors.