There are many ways some people will tell you to manage your credit cards, however there is only really one effective way. This way is to be careful and pay your balance off. That might sound pretty easy but when it comes down to it, it actually isn’t very easy…
What you need to do is create a strategy and stick to it. The best way of doing this is to work it out in the following way:-
- Work out how much money you have coming into your household.
- Work out how much money you have going out of your household.
- Don’t mess with the bills or anything else like that. If you need to pay bills then don’t do it with your credit card!
- If you want to get the most out of reward points and cashback etc then you need to pay for these on your credit card.
- If you pay for items on your credit card, put the money to one side or into a separate bank account.
- This one is the most important of all. Make sure you pay off your balance at the end of every month! This is the most important thing of all and if you have followed the other instructions then you’ll be able to do it easily and still be able to function. If you don’t have the money to pay the bill at the end of the month then you have clearly overspent or else you have miscalculated what money you have coming in or out.
Following these simply rules will allow you and your credit card to live in harmony with one another for a long and happy life.
Tags: Bad debt, manage credit cards, paying credit card bills