Credit card discipline is the new black
According to Dictionary.com, discipline can be defined as 'training and control of oneself and one's conduct, usually for personal improvement".
When it comes to credit cards, training and controlling the way you use them will lead to personal improvement. Of course this is much easier said than done.
Unfortunately for the average Joe (or Josephine), credit card policies are not 'one size fits all', therefore they are not the best option for everyone. This may seem like a doom and gloom approach to credit cards, but these days so many people are using them without realizing the debt they are getting themselves into. If used wisely credit cards can be an excellent way to pay for your purchases. I stress the fact that they need to be used wisely...discipline is the key!
A wise person once said that credit cards are like alcohol. Some people can handle it, some become alcoholics. This statement couldn't be truer if it tried. Like alcohol, people can become dependant on credit cards, as a result forcing themselves into a downward spiral of depression that can be hard to claw your way back out of.
In order to stay out of this downward spiral and use your credit card to your full advantage you MUST PAY IT OFF MONTHLY!!!! This is the no-frills tip that will allow you to get maximum benefit from your credit card - simple yet effective; because if you can do that, its basically a free loan.
If you don't pay it off monthly it's not the end of the world, but the credit card companies will now be using you to their advantage. Upon issuing credit cards they are banking on the fact that you will not be able to pay back your credit on time.
In some cases it may take you a few months to pay off your debt, and this is fine if you are happy to pay the interest in return for getting your purchase now instead of later.
Like most forms of payment there are various advantages to using credit cards. Once you have good will power and financial sense they can be a great way to make those big purchases when you want them instead of having to wait until you've saved up enough money.
Since all of your transactions are electronic they are all recorded and sent to you monthly so it's an effortless way to keep track of your expenses. Used responsibly - with discipline - you will build up a good credit rating, making it easier for you to gain large loans with lower interest rates in the future.
They are also handy for making purchases online where you can often get better prices or discounts that you wouldn't normally receive in a store, sometimes even earning rewards points for your purchases.
Of course none of this is any help if you let your credit card debt get on top of you. Though it may be hard, exercising discipline will benefit you in the long run. So before getting a credit card do your research and make sure you are getting the card that is right for you. You will be able to spend your hard earned cash on something you want rather than using it to pay off accumulating interest.
Find us on