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The Plastic Rules: How To Properly Manage Credit Cards

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You see everyone roaming around with credit cards now and wonder just how powerful of a financial tool it is. As helpful as it may be, it can also land you into credit card debt.

Once you have one credit card, multiple banks offer you other credit cards – if you are being offered one for free, then why not, right? The more credit cards, however, the more difficult it will be to manage your debt. In this article, we will discuss rules in managing your credit cards so as to avoid yourself from landing into trouble in the near future.

Know Your Cards’ Limits

First and foremost, determine the limits of each card. One card may have a $500 limit whereas the other might have a $1,000 limit. By keeping track of the limit, you will then know how to effectively use your card – for what purpose and how much of it can you afford to spend and pay by the end of the month.

Find Its Purpose & Set A Budget For Each Card

Setting a budget to spend for each card is essential. If one card offers good rebates on groceries and shopping, then make sure to use that card on groceries and shopping alone. In addition to that, set a budget for spending on each card – do not go beyond that limit if you do not need to as it will encourage you to do so in the future.

Keep Track Of Your Expenses

So you have set a budget for your cards – what now? After spending, save your receipts and keep it an envelope. It would be best to keep labeled envelopes beforehand so you can segregate receipts in your free time. Once the receipts are in their respective envelopes, find the time to compute how much you have spent.

By keeping track of your expenses, you will know whether you have met your budget or went overboard with it. If you went overboard with the budget, make sure you arrange money in order for you to pay your bills on time and in full. Remember that banks have high interest rates, so not paying on time and in full (given that you use your card often) could put you in a bad place in the near future.

Pick A Due Date

Picking a due date is essential. If you are working, make sure to pick a due date that is close to when you will be paid your salary. Though most banks offer an end of the month due date, you can always call your bank and request for them to change it. While others struggle with how much they have to pay, for others it is simply about when to pay the dues. With multiple credit cards, try to choose a day in which you can settle all your credit card bills for a hassle free rest-of-the-month.

Set Alerts For Due Dates

By setting alarms a few days before and of course, on the day itself, you are reminding yourself that this is a priority – as it should be. If you fail to pay your bills on time, you will get charged with interest; sometimes, the biggest trouble lies in paying off the interest. There are multiple websites that offer free alerts such as Credit Karma and many others. Another option is to do it manually over the phone or computer. If you are not a fan of the alerts, many banks now offer the automatic payments option – an option in which your bank automatically withdraws money from your account monthly when the credit card bill is due.

Check Your Cards’ Activities From Time To Time

Lastly, keep a good check on your cards. Sometimes, in a tired state, you just spend on your card without even realizing it. This is not ideal as it can come off as a surprise when you are paying your bills.

With all that has been said, you must learn how practice using your card appropriately. Though this may seem like a tough task, if you remember the rules that have been mentioned above, using multiple cards at one time will not be as frightening. Remember that credit card debt is real, and is most certainly not worth the extra money.

If you want to See more tips on credit card management, visit www.unsecuredcredit.cards.
Having a credit card does not mean having a shopping spree anytime you want. If you do not want to drown in debt, you need to spend wisely. See more tips at http://unsecuredcredit.cards/.

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