Managing Your Credit Card

CREDIT or BORROWING money can sometime be construed as a necessary evil. This may be true for individuals but in general we all know that even the largest and richest country in the world rely on credit to run and make their economy grow. For a person borrowing money, this can be more of a problem if not used properly. For an individual, filing for a loan may be hazardous to one’s financial health but today we simply cannot avoid doing business, especially purchases by credit and the use of credit card is a very good example. We have to face that gone are the days when purely cash transactions are the only way to do business. Now, you have to use some form of credit to some transactions and credit card is one of the ways to do it.

 

The Easiest Form of Credit Facility

 

Almost everyone who has a job or regular income will have some kind of access to some form of credit facility and the Credit is perhaps the easiest one to use. This can be used to make purchases without the benefit using cash. Since credit cards are can be access by almost anybody who has an income, it provides some flexibility to the owner making it easy for him to repay the debt that the card has incurred. For instance, there is the “grace period” payment scheme; deferred payment scheme which gives the card user a few weeks or month before the purchase is reflected on the bill and the most convenient of all is conversion of purchases to be paid in installment.

 

A Word of Caution

The main problem of having a credit card is that one can easily abuse its purchasing power. This is where you get into a financial dilemma. Remember that credit card companies purposely put a high limit on credit so as to encourage use. This is where your discipline comes in. Make sure that you should only use the card only in an utmost necessity and if possible pay the whole balance of the card at month’s end.