The Broke Person’s Guide to Credit Cards
February 22, 2019
We all know that credit cards are a useful thing. However, they often turn out meaning financial ruin for many people who end up using them irresponsibly.
If that’s happened to you, there’s no reason to be upset. Credit cards are designed to be both handy and terrible. It’s easy to get into that whirlwind of spending that often results in you being broke and having a bad score and debt you can’t get rid of.
The thing here is that you only need a handful of tricks to help you use your cards the right way, and some alternatives when there’s not enough money for emergencies.
Don’t’ Get an Increase on Your Limit or Another Card
Many people try to get a limit increase on their credit cards when they need or want to spend more. That might seem like a good solution, but it’s only in the short run. You’re only buying yourself some time before the inevitable problems of debt reaching you.
An even worse thing that you can do is get another credit card. Your creditor will either refuse you (the most likely outcome) or even worse, give you a new credit card at an immensely high interest rate.
Solution? Don’t use credit cards when you’re already close to maxing out the one you have.
Use Your Credit Card Like a Debit Card
If you still want to use your credit card, the best thing you can do is treat it like it’s a debit card.
Yes, it’s nice always to buy what you want when you want. But it won’t be nice later on when you’re in high interest debt that you can’t pay off.
It’s much better to use your card responsibly and spend only when you have the cash to back that spending. What’s more, this will tremendously improve your credit score. In less than a year with such credit card use your credit score is likely to surpass 800.
Create a Budget and Start Paying Everything on Time
Being almost out of money is no reason to act irresponsibly. Now is precisely the time to start living according to a specific budget.
Sit down and do the math. Calculate your income and expenses and see how much you can spend.
Additionally, you should start paying all recurring payments on time. By doing that you will keep or increase your credit score as well.
If your credit card is maxed or you have several in a similar situation, it’s time to make that budget account for savings. Start spending less than you make as soon as possible and leave the leftover money on the side. Then use it to pay off those cards.
In the meantime, you should make it harder for yourself to use your credit cards. Keep reminding yourself of what will happen if you don’t, and try to leave your credit card at home more often than not.In the end, it’s all about being responsible and practicing the art of self-control. If you’re low on cash, you can always get an easy to obtain, no hidden fees, low-interest loan from sources that are not trying to put you in even more debt. Apply for it now with only a few clicks!