Quelques trucs pour mieux gérer ses cartes de créditOctober 13, 2016

Some Tips to Better Manage Your Credit Cards

A credit card is a bit of a double-edged sword. It can be a valuable tool, or a dangerous trap, depending on the use one makes of it. When used with forethought, it can be very useful. If you remain careful with your credit, you will stay in control. To avoid having your credit cards become a burden, here are some tips to help you better manage them.

Pay the Balance in Full

If it is possible to repay the whole amount at once, without tightening your belt too much, do it as soon as possible. If you are unable to repay it all, pay at least the minimum amount each month. Discipline yourself and be systematic. Each amount paid on a regular basis will help you build a good credit rating, which will have positive consequences on your financial future.

Avoid Taking out Cash Advances on Your Credit Card

When you withdraw cash on your credit card, you start paying interest automatically until you fully repay the amount due. If you need to withdraw money, use instead your debit card from your bank account. If you do not have enough money in your account, look instead for a way to reduce your expenses in order to reduce your debt.

Choose a Low-Interest Credit Card, a Line of Credit, or a Debt Consolidation Loan

The interest to repay each month can be an important part of the total amount. If you want to reduce your debt, one of the first places where spending should be reduced is the level of interest.

If your credit card rate is 15% or more, see if you can transfer your balance to a card with a lower interest rate. Stay alert. Some promotions offer you a card with an interest rate as low as 0%.

A line of credit or debt consolidation can also allow you to group both your expenses and your repayments. For more information, read our article [16 - Consolidate debts].

Most Importantly, Do Not Give in to Temptation!

Before making a purchase, ask yourself if you really need the item. It is good to have fun from time to time, but if you do not have enough money in your bank account, it is better to wait until later, when you have enough.

Big Probems Call for Big Remedies

When your debt reaches astronomical levels or you experience the same problems repeatedly, it is time to think about more drastic solutions. Taking the scissors to your credit card can allow you, at least temporarily, to stop the growth of your debt and get on top of the situation.

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