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Credit Cards Usage Without Accumulating Debt

Credit card debts can leave you with sleepless nights. This may also hinder from attaining your financial goals. But, it is not saying that credit card usage is a disadvantage. In fact, can be an excellent part of your lifestyle! It allows you to take advantage of free travels/perks. It also gives you purchasing power on things that you want/need to buy.

With the proper attitude and planning on your credit card usage, you are likely to be successful in managing your card purchases.

Here are few steps in using credit cards without falling into the debt pit:

> Stop creating a debt pit – Prior your credit card usage as part of your financial plan, you need to make sure that you are not creating deeper pit of debt. Realize that debt is a symptom of the problem. You need to have your spending under control so that you are not exceeding on your planned budget. If you feel that you are sinking deeper on debt, STOP credit card usage at once! Try to go at least few months without incurring debts to eke out on you budget.

> Plan what you spending – Make sure that you plan your spending. Classify your spending in card usage such as: business credit card, daily/regular purchases/bills credit card, online purchase credit card.

Each card has a purpose, and you can prioritize your spending wherein you can get a break from being compromised financially. While you could benefit out of putting everything but your business – including online spending on one card, it is a better idea to have these things split so that if the online card is compromised, it will not affect your other card (vice versa).

> Pay your credit card bill every month – The very reason for having a plan is, due to the fact that you need to be able to pay off your credit card. You have to bear in mind that each credit card represent each purpose on your spending. In order for this plan to work to your advantage, you need to pay off your credit card each month on or before due dates, in order to avoid incurring interest charges. Your income sits in a money market account, earning interest for the month. When it’s time to pay your bills, you can do so and avoid interest.


If you fail to track your spending, or you did not set up plan for your money so that you live within your means, this will not work, and you should probably re-think using your credit card.

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