This is something that we all can work on. A lot of people with credit cards tend to do spontaneous shopping because you know you have a way to buy the things you want. That’s all fine until you see the monthly bill. Avoiding it is the last thing I would suggest to do. Always try to pay $50 even if they only require you to pay $20. Most of the time the minimum payment only covers half of what the interest is for that month, and sometimes the minimum payment doesn’t even cover the interest. If you try to pay $50-$100 your balance will go down and with time it will be gone. If you think about it this way…sending in a $100 payment is what you would pay in 5 months. That’s nearly half a year!

I’m all for credit cards, and I use them when I need them. I’ve been in a lot of debt the past 2 years and a lot of it wasn’t my fault so I learned some lessons of a lifetime…

* Never put anyone on your account. Ever. You can’t trust them to pay you back and you don’t know what will happen in their life that will make them unable to pay so unless you want to get stuck with a $2000 balance that you have to pay down don’t put anyone on your account. If you’re the only one using your credit cards then you wont be able to complain about how someone else ran your bill up.

* Always send your bill in on time. Even if you don’t have much money that month don’t miss the due date. Send the minimum payment in or else you will regret what will happen in the future. Having a credit card that is past due effects your credit score and it could possibly hurt you in the future if you want to apply for a new line of credit. Also, most credit cards usually charge at least $30 when a payment is not received by the due date.

* On the strip on the back of your credit card where you are supposed to sign put “Ask for ID”. You don’t know what may happen, and although all stores aren’t required to check your ID or look at the back of your card this is an added security method. If someone decides to go on a shopping spree with your card hopefully they wont get too far…

* If it is possible keep the balance on all your credits 50-75% below the limit. For example, if your limit is $1,000 only spend 250-500 of it. I know this is very, very hard but it works. It really helps out your credit score because it shows that you aren’t an impulsive buyer and you work hard to keep your balance down.

* If you don’t like carrying cash open up a bank account and get a debit card. Debit cards are better than credit cards if you like to use them on everyday expenses, plus there is no interest! And with a debit card you can’t go over the limit because it’s like having cash…once you’re out…you’re out. A bank account is also necessary when you want to pay your credit card bills since they only take checks or money orders so you should keep that in mind.

* Before you make a purchase ask yourself if you really need something. If you don’t need it just get it another day when you can pay cash. You’ll be thankful in the long run.

Credit can be good if you use it wisely. Before you sign up for a credit card check and see what the fees are. Most people can get a credit card without paying any annual fees so try that before signing up for some random credit card company that sends you a “You are already approved!” application in the mail.

I really hope this helps. If you have any questions feel free to ask!