New Year’s Resolutions for Using Credit Cards

March 20, 2012 by  Filed under: Credit 

Credit cards themselves are not a bad thing. It is how we use them that create problems that sometimes can cause us to remain in debt. With so many people in debt across the nation, it is no wonder that many have made New Year’s resolutions to get out of debt. Their first instinct is to cut up all their cards as a way to achieve their goal. While this may be a seemingly easy way to accomplish this, it does come with a few drawbacks. Being more responsible and making a resolution on how you will use your credit cards is a much better way to deal with debt.

There are times where having a credit card is beneficial. If you have ever found yourself in an unexpected situation that arises that requires an investment of money to resolve and you do not have the cash, they can be a way to help you get out of that unexpected situation. Making a resolution to only use them for these types of situations is a great way to help you concentrate on your debt and still allow you to use them for the times that you need it the most.

You can also benefit from this type of resolution if you are one who is working on building your credit score and found that you may have gone a bit overboard with credit card debt. By making the resolution to only use your cards for emergencies, you can concentrate on repaying the debt you already owe and still build up your credit score. By not adding additional credit card debt by using it only in emergencies and continuing to pay your current debt promptly every month, your credit rating can still be improved.

Credit cards can also be an opportunity to make large purchases such as for furniture that you would normally have to spend time saving for. This could mean you would have to wait a year or longer to enjoy the item you want to purchase. While this could mean you going into debt and going against your get out of debt resolution, making a resolution that you will only make a specific purchase this year and set an amount that will be used to pay back that purchase is the responsible way to use your card.

Evaluating how and for what we use our credit cards for and making a responsible resolution based on that information is the best way to help you get out of debt without getting rid of them all together. Using them responsibly and not as a way to supplement your income will likely help you avoid getting into debt in the first place. Careful planning and proper budgeting should still be made when making large purchases, paying for unexpected expenses or emergencies, or for any reason that you may be using your card.

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Article Source:
http://EzineArticles.com/?expert=Greg_M_Beaumont

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