subject: Responsible Use Of Credit Cards [print this page] The average household in the United States carries 4 credit cards, but many of them also have thousands of dollars of credit card debt as well. Although credit cards can be useful for several reasons, they are also a dangerous tool for getting way over your head in debt if you use them irresponsibly. Follow these guidelines to ensure that your credit card use is responsible and that you arent borrowing more than you can handle.
1. Use a credit card for basic household expenses, like groceries and gas, only if you can pay for those items in full when the bill arrives. You should not use the credit card as a way to live beyond your means in these categories, and if you cant keep up with these, you need to find a way to drive less and purchase less expensive foods.
2. Dont put something on your credit card if you will be done using it before youre done paying it off. For example, you dont want to use the card for a vacation and get stuck paying for your trip years after its done. However, it can be OK to use the card for car repairs if youll still be driving your car when youre done paying off the bill.
3. Pay more than the minimum on your bill every month. Ideally, you should pay off each of your credit cards in full each month. If you cant afford that, then pay as much as you can afford. Remember that youre paying interest on the balance if you leave it until next month, so the best strategy is to pay it off completely as quickly as you can.
4. Dont get more credit cards when you max out the ones you have. Instead, take a hard look at your budget and figure out why you cant live within your means. You may need to get another job, move to a less expensive housing situation, or decrease your discretionary spending. All of these are better strategies than building up even more debt.
For more information, go to Credit Cards at http://www.creditnowusa.com/Credit-Cards
