I am an avid fan of credit cards but that is only because I know how to use them and not abuse them. The people who usually find themseves in strife are those who use a credit card to buy something they can’t afford. This is great if you can afford the repayments and as long as you don’t let purchases outstrip your means of repaying for them.
The best thing I find about my credit card is the reward system. This is where the credit card company rewards you with points for using their card. I therefore use mine to pay for as many things as I can including bills, gifts, petrol and shopping etc. This has the added benefit that you get an itemised account at the end of your billing period. Of course, it must be understood, that you have enough money in your account to make either the full payment or a majority of it at least. The last thing that you want is where you get into a situation that you are making so many purchases you can only make minimum payments and the whole thing gets away from you. Remember you control the card, do not let the card control you.
If you get into that dreadful situation where you are losing control of your credit card, it’s not too late. What you need to do is to transfer to another card with a lower interest rate. Then you need to stop using it until such a time you have the amount owing to a manageable level. I recommend paying more than the minimum so that you will be cutting the amount of interest you are paying and then not to let it run away with finances again. Remember use it don’t abuse it.
