subject: Using Your Credit Card Wisely [print this page] Using Your Credit Card Wisely Using Your Credit Card Wisely
The evidence of credit card use abuse is in the sheer number of people of have gotten into credit card debt. Because of this, people are realising just how much wiser it actually is to ditch their credit cards and start paying in cash again. However, there are instances when paying using your credit card is still the smart way to go. The important thing is that you learn to recognise when it is that paying using a credit card will benefit you more than paying in cash.
An obvious instance wherein you do need to pay using your credit card is when you shop online. True, there are usually other payment methods available when shopping online, such as wiring money, sending in a check, or paying in payment centers. However, it is clear that these methods are inconvenient and will take more time to process than if you just pay online via your credit card. Furthermore, fees can be added for these payment methods, especially when you pay in payment centers, which obviously increases your expenses. In this case, it is quite clear that it is just smarter to use your credit card online.
When it comes to daily purchases though, paying using cash is usually just as convenient (if not more) as using your credit card. This means that the convenience argument is not really a valid excuse for choosing to use a credit card instead of cash. The only really valid reason then for using a credit card is when you know you can save money by using your card.
Instances when you can save money by using your credit card instead of paying in cash include: Special promos - Promotions to encourage you to use your credit card are given by Visa and Mastercard Ireland. Your issuing bank may also hold promos for the same reason. Watch out for these promos where they give significant discounts and cash back rewards that will really help you save money. Sales - Use your credit card if something you need is on sale but you do not have enough cash on you to buy it on the spot. However, make sure that you pay off the same amount the same day, or before it is due to avoid paying interest on the item. Major purchases - If you really need something but it is too expensive to buy at the moment, you can purchase it with your credit card. Note though that you should always make more than the required monthly credit card payment to pay it off as soon as possible. This is especially true if buying that item is necessary for you to earn money, or significantly decrease your overall expenses.
