Credit cards can be a blessing when it comes to large purchases. They prevent you from having to carry excessive amounts of cash and, depending on the card, can provide you with competitive financing options. There are a few things to keep in mind when deciding whether or not to use a credit card. Take a look at these easy steps to help keep you from getting yourself into trouble with debt.
Establish and stick to a budget
Keeping yourself on track is the most important and key component to staying out of debt. You may be tempted to charge that brand new gadget because it’s the latest and greatest thing, but you need to be able to justify it financially before doing so. If it’s not in your budget, don’t buy it.
Understand how reward cards work
Some people get caught up in reward offers on credit cards. Sometimes people that hold these cards end up spending way more than the reward is worth and get caught up in major fees and interest rates.
Choose cards with lower interest rates
Having a better credit score allows you to be approved for credit cards with lower interest rates. Try not to be fooled by fancy offers or catches associated with applying for a new credit card without looking at the full details first. Usually, cards with the best introductory offers bump up to sky-high interest rates after the first 6 months or so.
Don’t keep balances longer than 6 months
Compound interest adds up quickly. The longer you keep a balance, the larger the amount you pay. Don’t let you balance snowball for longer than six months, or it can become extremely expensive to pay off.
The Milwaukee bankruptcy specialists at Burr Law Offices are here to help keep you out of debt. If you find yourself in financial trouble, call Milwaukee bankruptcy Attorney Michael Burr to schedule a consultation.