How to Manage Your Credit Card
Whenever you make comparisons between cash money and plastic money, the issue of ease of carrying each around will often be used as a comparison. In this case, credit-card is simpler than walking with money around.
All the same, carrying around a credit-card exposes you to a lot of unplanned for spending. It is tempting to see something through the glass window and in a flash be swiping a card. Consider these benefits and downsides of credit-cards.
There is a risk factor when you go to buy something that costs a lot and want to pay with bank notes. Walking with money in a bag could be something we see in fantasy movies but in real life, it is very dangerous as anyone can follow you and do something stupid. A credit-card is a smarter means of doing it.
If you like gifts and other promotional freebies, credit-cards will attract a lot of those. Many credit card accepting businesses will always have a competition or a raffle going on. The other common types of rewards for using credit cards are rebates and percentage off privileges. These help you spend less.
The problem with carrying a credit card everywhere you go is that you are exposed to so much possibility of overspending. It takes too much discipline to contain yourself from shooting that figure you had planned to spend in the first place. When our bills reach the mailbox, we bite our fingers in frustration before we even open the envelopes.
If you by any case stretch beyond your payment deadlines, you will have to part with about 10% per day as interest charge.
Do not let your credit card balance run into a pile of debt. The lesser you monitor your spending, the more trouble you will get into. Deal with bills before they accumulate.
Mostly, people end up in credit card debt because they have a free spending spirit when they carry the credit card around. It is natural to want every nice thing you see simply because you have the card.
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