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What to know about handling Credit cards


August 23, 2019

Credit Cards

Getting our first credit card can be very exiting. We run to the store feeling confident we can get anything we want based on the limit. It also doesn't take us long to burn the card's limit up very fast. This leaves us with a debt we didn't expect and now we must find our way out of it. We have to learn how to handle our credit limits and put the cards aside for something else. Credit card debt is one of the most crippling financial mistakes people are living with today. It is stopping them from moving forward with life in terms of getting new homes or cars. Our card's debt is smothering us and we don't even realize it at times. Here are some things to know about credit cards.


Take a moment to think about how you use your credit cards. Are you just grabbing them because they are there and you can use them? Do you have a plan on how to use them? We all go through these kinds of thoughts off and on when comes to credit card usage. The golden rule is to not use more than 30 percent of the card's limit. Unfortunately, too many people are unaware of this and rack up some serious debt. You have to learn how to use your cards to your advantage. You will need to create some kind of plan that keeps you from snatching up your card just to get a piece of gum.


Understand your card's limits and the terms. This is what gets us in trouble with the credit card business to begin with. We assume because we have a $50,000 limit that all of it is accessible when in reality, it's not. Many credit card business do monitor how you are running up your limit. This might make them cut your limit down even though it was originally higher. In some respects, they are saving you from mounting debt that is about to occur. It's also a wake up call that you need to scale back on the spending. Start using cash if you are finding that your card is your main source for buying everything. This can only make you more responsible when using your card and respecting the limits.


Try making a budget for yourself and for your credit cards. Look at each one and decide what you will use them for regarding expenses. You might decide to only use one card for filling up your car. The others can be sorted out to where one is used for emergencies only. Putting yourself on a budget is the best thing you can do for yourself and your cards. This keeps you in line with the card limits that will now be under control. You need a budget when you find that everything is placed on a card and you never use your cash. Try to not use your cards for at least a month and see how this effects your finances. You might be surprised that you can live without using your cards daily.

How many?

How many cards does one really need? We all know the friend or the relative who can boost they have about 10 cards that they can use at any time. The limits range from $500 to $60,000 and this makes them happy. You have to honestly ask yourself, do you really need all of these cards? There is such a thing about becoming addicted to cards and credit. You have to realize that having 10 cards is probably not the best thing in the world to do. It all comes down to how you use the cards and how much debt you have stacked up. If you are running around crazy and spending on 10 cards, then you are going to be headed for trouble. Try to scale back on the number of cards that you have in your wallet. You may not want to abruptly close an account as this can hurt your credit. Put it in a safe place where you don't have the ability to reach for it.

Handling our cards isn't difficult if we know what we are doing. It's something that not all of us has mastered or worked out a plan for. The usage of our cards is what gets us into so much trouble. We find that our cards are the number one source we use to get just about everything we need. Never take your limits for granted on your cards as you will rack up more debt than you realize. Create a budget for your cards so you can keep on track with bills. No one needs 10 to 15 cards in their wallet as it only makes you spend more money.