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