Ways to Make Your Credit Card Work for You, Not Against You
People tend to spend more when they use credit cards in place of physical cash. While credit cards can be used to rack up airline miles and points that can be used in place of cash over the long term, spending money is simply easier with credit cards. Many people end up spending up to 100% more because using a credit card takes away the immediacy of the payment. There are many ways to ensure that you don’t let impulse buying get the best of you, and instead use credit cards responsibly without taking on too much debt. Pay off as much as you can Your credit card debt should not exceed 10% of your monthly income. Don’t just pay off the minimum amount every month. That will accumulate your debt uncontrollably. The only way to avoid getting into a debt crisis and avoid paying interests on your purchases is to pay off the entire amount whenever you can. This could mean paying it off in full each month, or a few times a month, if you feel that would help you stay o