It is hard being levelheaded most of the time especially when being a little reckless can be more fun and enjoyable. But as much as many hate to say it, irresponsibility will soon pay back in the future and a little sacrifice now will not hurt your financial standing in any way.
The same principle also applies to credit card usage. People have the tendency to excessively indulge and overuse these plastics without knowing the long-term repercussions that await them. It will take a whole lot of discipline and presence of mind to control credit card usage especially since it offers a great many short-term rewards and satisfaction upon usage. Before being enthralled by the convenience that credit cards offer, one should always keep in mind that using them demands a huge responsibility. Here are some tips to always be on track with credit card usage.
1. Diligently settle balances monthly and avoid being tardy with them. Paying debts is not the most exciting thing to do but paying on time almost always outweighs the hassle. Creditors and banks know that by giving you credit, they are investing their money so a person can purchase what he needs. Needless to say, they will expect to be paid back in return and will take action if ever they are not.
2. Do not use one plastic to bail on another. Balances on credit cards should be paid with one’s own funds and not with another credit.
3. Don’t lend your credit card to family and friends. One balance is already something; splitting it to two or three monthly liabilities will only be a big blow to one’s credit score.
4. Keep receipts and other transaction proofs so that when billing statements arrive, cross-examining and validating them will be easier and unnecessary bills can be avoided ASAP.
5. Lastly, never borrow money that eventually cannot be paid off.
