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Using Credit Cards

Most of us use credit cards regularly to manage our day to day expenses. Here are some principles to keep in mind when using the credit card.

Rule 1 – Always pay off the balance in complete each month

This looks as an easy thing, but it is surprising how many individuals who keep an outstanding balance on their credit cards accumulating attention at an alarming rate. The best way to avoid this is to set up an immediate debit from your everyday banking account which deducts the complete payment on the due time. This is not a widely used facility so you may need to ask your financial institution for the form. If you like its difficult to pay off your credit cards – then you need to take the time making a budget and evaluating your cash flow every week.

Rule 2 – Always check your credit cards statement

Your credit cards declaration runs to a couple of pages or more and it is often hard to remember what you spent cash on. Calculating this problem is the truth that the name on the credit cards declaration often holds little similarity to the Vendor! Sit down at the month’s end with your partner over a glass of vine and tick off each line on the declaration. However, preferred method is to categorize each entry on the credit cards every week using cash flow software which dynamically downloads all transactions. This may sound complicated but once you get into the routine, you will feel in control of your finances.

Rule 3 – Take advantage of free days

This is a fantastic gift from the financial institutions. Many credit cards have a maximum of 55 free interest times and this should be a key requirement when selecting your credit cards.

Rule 4 – Reward points are great

I don’t have space here to discuss all the benefits and drawbacks of the various credit cards reward programs. Be sufficient to say that the best solution is to keep it easy. Build up points on credit cards which can be used for just about anything including; vouchers to Myers, Apple products.

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