Let me tell you how to use credit cards.
Don’t use them.
Unless of course you are very good with numbers, you have loads of money in the bank and/or your skills are highly needed and you have never had difficulty getting a job.
Otherwise don’t use them. At least not if you can help it. Now, if you are in dire need and you have no other option, by all means go ahead and do it.
I’m here to share with you five tips on how to use credit cards in case you are on low salary and/or in debt.
Tip 1: Use your credit card only to purchase what you need. Go about your life as if you don’t have any money, because in reality you actually don’t. If you did you wouldn’t use borrowed money. In life we have needs and wants. If you have to borrow on a credit card because what you have is not enough to make do with, then it is highly unwise to be adding on your debt by satisfying your wants.
Tip 2: Do not finance a business on a credit card. If you don’t have savings aside to be paying for your needs then don’t start a business just yet. If it is necessary to be using credit card to survive it is not time for business adventures. I say this because if you do start a business while broke you are 90% more likely to fail. You’ll be stressed, with no margin for mistakes and no time to wait till the business starts making profit while your daily expenses run on full speed.
Tip 3: Pay your credit card in full at the end of the month so that you are not charged interest on what you borrowed. If you are struggling financially the last things you need is added interest to your expenses.
Tip 4: If you cannot afford to pay your credit card back in full at the end of the month, then at least try to make payments larger to that of the minimum ones required. If you do so you’ll get rid of your credit card debt sooner. Yes, it is possible to become debt free even on minimum salary!
Tip 5: Whatever you do, if you already started dancing the credit card dance, do not cut up your credit card. You might really want to get rid of your big debt, but if you don’t have big savings in the bank and somewhere secure to sleep at night for a year, keep your credit cards well tact away in a safe place. If any unexpected needs come up and you have nowhere to turn to, then you’ll need your much hated credit card. You never know when you’ll need additional help. You are not immune to needs if you are a human being. Needs such as an unexpected pregnancy, health issues, young children, old parents, vehicle loss, unemployment and whatnot, have the habit of turning up the moment you least expect them.
I know you are only human and you want to buy nice things that will make you happy like every other normal human being.
If you keep in mind however that it is all part of a never-ending consumeristic cycle, a cycle that at the end of the day is not to your benefit, you’ll be very careful as to where you spend your hard earned cash.