| A credit card can be an asset to your
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| | Handling money and credit cards wisely is
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| lifestyle, but if not handled carefully
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| | a talent few of us are born with. But it
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| it can become a liability, especially if
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| | is a skill that can easily be learned.
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| you find it so convenient and easy to use
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| | The place to start is with budgeting.
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| that you lose control of your spending.
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| | What is a Budget?
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| This short guide will help you understand
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| | It's simply an organized way of managing
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| how you can use your credit card so it
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| | your finances, basically, it gives you an
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| works to your advantage, not against you.
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| | overall picture of where your money is
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| Advantages
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| | coming from, when it's coming in and how
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| A credit card can:
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| | it's being spent. A budget should be
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| 1. Offer free use of funds, provided you
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| | flexible, changing according to your
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| always pay your balance in full, on time.
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| | circumstances.
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| 2. Be more convenient to carry than cash.
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| | Why Budget?
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| 3. Help you establish a good credit
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| | Budgeting helps us achieve short-term
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| history.
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| | goals like paying the monthly bills on
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| 4. Provide a convenient payment method
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| | time; it's also for longer-term financial
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| for purchases made on the Internet and
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| | goals like buying a home, a car, paying
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| over the telephone.
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| | for an education, a wedding or a holiday.
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| 5. Give you incentives, such as reward
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| | When you take control of your financial
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| points, that you can redeem.
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| | affairs, you're more confident about the
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| Disadvantages
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| | future.
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| On the other hand, credit cards can:
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| | A budget is key to financial control. It
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| 1. Cost much more than other forms of
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| | gives you a "Polaroid picture" of where
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| credit, such as a line of credit or a
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| | you stand financially and where you're
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| personal loan, if you don't pay on time.
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| | heading.
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| 2. Damage your credit rating if your
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| | Credit card control tips
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| payments are late;
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| | Use a low or no-fee credit card and save
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| 3. Allow you to build up more debt than
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| | on the annual fee that some companies
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| you can handle;
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| | charge.
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| 4. Have complicated terms and conditions;
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| | Only charge to your credit cards what you
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| What is a credit card?
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| | can pay off in full when the bill comes.
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| A credit card is more then a simple piece
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| | You might not use your credit card as
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| of plastic, it is first and foremost a
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| | much if you start believing that you have
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| flexible payment tool accepted at 30
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| | to pay off your entire balance at the end
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| million locations worldwide, and if the
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| | of each month.
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| card balance is paid off every month,
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| | A good way to help to reduce what you pay
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| then no interest is charged on purchases
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| | on your credit card is to search for a
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| made so, essentially, short-term credit
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| | card with a lower interest rate. Many
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| is granted without the consumer paying
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| | financial institutions now offer at least
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| any interest.
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| | one of these types of cards.
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| Among its many features it provides:
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| | Remember that when you take a cash
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| 1. Access to unsecured credit (no
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| | advance on your credit card, the interest
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| collateral required against amounts
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| | starts accumulating immediately and not
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| charged)
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| | on the due date of your credit card bill.
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| 2. Interest-free payment from time of
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| | Also keep in mind that if you make only
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| purchase to the end of the billing period
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| | the minimum monthly repayment you may
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| 3. Instant payment of purchases, allowing
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| | never get out of debt.
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| for instant receipt of goods and services
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| | Conclusion
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| 4. 24/7 access
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| | The main advantage of having a credit
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| 5. Fraud protection
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| | card is convenience but if you're not
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| However before you decide to use your
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| | good at budgeting and managing your
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| credit card, carefully consider all of
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| | finances, the over-use of credit cards
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| the factors and weigh them against your
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| | can leave you with a debt that's very
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| personal needs and values.
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| | difficult to pay back.
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| What about credit card control?
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