Do Not Use The Credit Cards On Impulse

Category: Finance, Credit.

After getting credit cards, it can be very tempting to go on a spending spree and buying all sorts of new things that you otherwise won' t buy before. Ultimately you may be in debt.

So, chances are there that you end up shopping a lot and go beyond your affordability level. So, you must resist that temptation and use your credit cards wisely. But proper planning will be helpful. It may be difficult. To begin with, you have to remember that you should not spend more than what you can afford. Subtract your monthly expenses from your monthly income. You should have a budget to figure out your affordability.

The result you get is your disposable income. Anything beyond this you spend may cause you trouble. You can afford to spend on shopping. Remember this when you use your credit cards. But you should not exceed your disposable income just because you can do this with the credit cards. However, credit cards give you the leverage to go beyond the surplus amount. Over usage of the cards may take you to above the credit limit and won' t be able to spend any more, even if you have an emergency.

Do not use the credit cards on impulse. And being unable to use the credit cards on emergencies is something really pathetic. Unless it is very urgent, wait for some days and shop when you get some rebate or cash back. You can make use of these offers. Very often, credit card companies give special offers. This does not mean that you should not use your credit card except in emergencies. Finally, do not delay in paying off the bills.

Rather, you should use your credit cards periodically. Delay in paying bills may make you pay some extra that is just money going down the drain.