If you have experienced the brunt of the consequences of using your credit card without planning, you may feel aversion for credit cards, and rightly so. Credit card is one of the most abused debt instruments and has caused many individuals to break down. However, credit cards are not inherently bad. If used responsibly, they can be a saviour in times of need. Many times when you are in bad credit state, financial experts will advise you to stay away from credit cards. The sad part is, people usually turn to a financial planner when the harm is already done. If you have got a credit card, instead of becoming a victim, use it in ways which can help you leverage it to your advantage.
1. Never associate credit card with financial freedom
This is the first step to make credit cards work for you. Do not think them as the extension to your existing income. Credit cards are credits and they should be used like that. The problem with average credit card users is that it makes them feel financially free. It is easy to take out a credit card and swipe them right and left. However, you need to carefully plan your spending, before you go ahead and swipe that smart plastic card to purchase something you don’t really need.