Avoid the debt trap

Having a credit card on hand mans understanding its implication for you fully and many people fail to do exactly this. Used responsibly, it can do you a world of good. Used poorly, it will send you into a downward spiral you might not recover from. Credit cards are undoubtedly good for you, but only if you choose to wield it wisely, like so.

Read the fine print

Every card comes with tons of legal gobbledygook, make sure you read it through and through and clarify the stuff you don’t understand (because there’s always something in there someone doesn’t get), such as terms & conditions. Always ask for help when you’re in the dark.

Read through your monthly statement

Terms & conditions do keep on changing, if not on a monthly basis. Keep an eye on those due dates, add-on fees and any changes in interest rates you might not get. Check your statement online at any time if you want even greater control. Pay attention, it’s better than paying an unwanted fee.

Be heard

Customer service is a little more than lip service normally, but be heard every time you need something addressed. Discuss charges you don’t get with customer service and if you need something reduced or checked into, talk to customer service. They can be very helpful sometimes.

If it’s too good to be true, it probably is

Paranoia is healthy, be wary of that special offer you are being extended so enthusiastically. It’s not just special offers either, it’s special products like insurance or add-on cards or fraud protection that you need to protect against. Be on your guard, credit card companies never offer you something without their own benefit in mind.

Settle your bill in full, every time

Avoid the debt trap, pay your bill in full every single time. Credit cards are meant as a method of payment, not a method to live a lavish lifestyle. If you can afford, buy it. Don’t hyper-extend yourself unless you can avoid it, mountains of debt can be hard to get out of.

It’s not just an issue with awareness though, it’s an issue with behavioral patterns too. What you need to do is budget yourself and ensure you can pay in full every time because that is the one cardinal sin everyone commits. Avoid impulse spending and buy only what you can, not what you want. Your fat bank balance will be payment enough to satisfy you.