Learn How to Keep Your Credit Card Purchases to a Minimum

March 20, 2012 by  Filed under: Credit 

Unfortunately, credit cards have gotten a bad reputation because they are considered to be responsible for people incurring large amounts of debt. While credit card debt is indeed a contribution to the debt that many people are faced with, it is how they are used that are the real culprit. Those who are faced with large amounts of debt are typically ones who have used their cards irresponsibly and failed to keep purchases to a minimum.

If you have a credit card or are thinking of getting one, then it is important that you learn how to keep your purchases to a minimum. They have the benefit of giving you a way to make purchases and payments when you do not have the cash to do so, but it still comes with the same budgeting responsibility as if you did not have one to start with. They are not designed to be a supplement to your income, but rather a tool to help you make larger purchases now that you would have had to wait until you saved up for to purchase.

One way to keep your credit card purchases to a minimum is to use it for only one large purchase at a time. If you make a large purchase for furniture for example, work on paying off that entire purchase before making any additional purchases. Doing so can keep your debt low and keep it at a manageable level. Also, be sure to budget for the additional amount of money that you will have to spend to repay the credited amount. Be responsible and do not make purchases where the repayment will put you over your budget.

If you are trying to improve your credit rating by using your card, you can still do so responsibly and keep your purchases to a minimum. Use them to pay for things that you normally would pay cash for such as gas or groceries. Do not spend the cash that you would have normally spent but rather save it and pay it off every month. Doing so can keep your credit purchases to a minimum, but will still allow you to build or rebuild your credit rating so that you can qualify for larger loans needed to purchase a house or a car.

Having and using credit cards is not as bad as many might think it is. It does require you to be responsible when using them and keeping your purchases to a minimum. Creating and following a budget even when using credit cards is the sure way to ensure that you do not find yourself drowning in debt. Furthermore, do not use your them as a way to supplement your income. This is where many find themselves falling into a trap that they have a hard time getting out of.

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