Debt Consolidation Home: Credit Card Debt Consolidation: How To Use Your Credit Cards Responsibly

Credit card provides life convenient in making our purchases. However, it may be the one that causes you trap in debt problem like what have been faced by many credit card holders if you do not know the rules of playing credit card game. Since most of us aren't born knowing how to use credit cards, we need to learn them and use them responsibly along our way. Here are the do's and don'ts on how to use credit card responsibly that encourage healthy spending habit.

What you can do with your credit card

1. Let your creditor know if you can't make your monthly payment on time

Sometimes unforeseen financial hardships may cause a delay in your monthly credit card payment. The late payment will incur late payment fee. However, you can try to ask for waiver of the late payment fee by letting your creditors know that you won't be able to make your monthly payment on time due to certain reasons. Most creditors will assist you if you let them know in advance before you miss your payment.

2. Always stay within 30% of credit limit

Your credit score is determined by the amount of debt you have. Keeping your balances low will helps you to maintain a good credit score. Ideally, you should always try to stay below 30% of credit limit so that you keep your debt at low level for ease of debt management while maintaining a good credit history for high credit score achievement.

3. Make wise decisions about buying items that really need with credit card

Most of time, people use their credit card to buy items due to their impulse buying behavior. The items may not what they really need but are what they simply want at the time of purchase. When you come across items that you are deciding to buy with credit card, take a moment to ask yourself whether the item is what you really need and should you buy it with credit card. Using your credit card responsibly means identifying the items you need from what you simply want and make a wise decision before swiping the card.

What You Should Not Do With Credit Cards

1. Don't buy things you can't afford

Don't let yourself live in a borrowed lifestyle as it is the quickest way to get into debt. Although, you may buy thing using credit card for convenient, make sure you can pay it when the credit card statement arrives. Don't buy things that your can't afford to pay for, for example you have budget to buy a notebook cost $500, but you use your credit card to buy a $1000 notebook, which is beyond your affordability.

2. Don't use credit card in everyday purchases

Although it is convenient to buy with credit card, but if you purchase things with cash, you will have better control on your money. Don't get into the habit of making purchases with credit card as it can quickly leads you into debt. Everyday's items such as food, clothing and gas should be purchased with cash or debit card so that you know instantly where your money goes.

3. Don't just pay the minimum-only monthly due

According to the surveys found, most heavy debtors who faced serious debt problem were initially tend to pay the minimum amount due each month on their credit card balances, making them get into the habit of paying the minimum amount although they have capability to pay more. Hence, you should always clear your monthly credit card balances or pay more than the minimum if you really can't afford to clear the monthly balances.

Summary

Credit cards can lead you to get into debt problem if you do not use them responsibly. Learn what you can do and should not do with your credit cards so that you keep yourself from debt while enjoying the convenience of credit card.