A credit cards for excellent credit or any other regular credit card is a valuable financial tool only if you know how to use it properly. Likewise, if you end up using a credit card with little or no responsibility, it is going to ruin your finances for good.
Let us understand this with the help of an example. According to a recent study, the average American household is burdened by nearly $7200 of credit card debt. The worst part is that this figure has continued to increase over the past decade. We very well know that household incomes have constantly struggled to keep up with the inflation rate. Combine that with the fact that any individual who is using a credit card often is expected to spend twice as much during a given period of time as compared to somebody who does not own a credit card at all. This shows the degree of responsibility that we exercise when using a credit card. The biggest reason for spending or rather overspending while using a credit card is the amount of freedom that it offers us. According to another independent study, using a credit card for excellent credit or any other financial instrument instead of cash coaxes you into spending more than you have planned to. This somehow muddles our fiscal judgment and we end up in a financial debt more easily.
According to statistics, more than 53% of all our purchases are made using a credit card but the downside of it is that we are not really as good as we should be when it comes to paying them off at the end of every month.
How Can You Fit A Credit Card For Excellent Credit Into Your Core Necessity?
Credit cards are not something that you own for fun. They are a financial tool that is designed specifically to address a financial need or get you out of a financial burden when you are faced with a difficult situation. For example, a typical American household needs to spend adequately on their monthly supplies and daily essentials including their groceries and medication of some family members. There are several credit cards in the market that offer bonuses and discounts on such merchandise and utilities. When you are faced with such purchase decisions, credit cards for excellent credit can be of exceptional help. Let us understand this with another example where you need to drive your car for long distance due to some family emergency. This is going to cost you a lot of fuel money. Considering that fuel prices constantly go up and down, if there is a price hike, the last thing that you would want to pay is an additional transaction charge set by the credit card company while making a card payment. In this case, you have the option of choosing a co-branded petro card where the charges that you pay for the fuel are credited back to your account automatically. Similarly, if you are a regular online shopper, there will be dedicated credit cards that are designed for individuals like you. They will give you extra bonus points for shopping at different brands and online platforms. This means that if you are not taking enough time to find a credit card that fits into your necessities well enough, you are probably making a big mistake.
The Final Tip Of Paying Off Your Debt On Time
At the end of the day, we cannot stress enough on the importance of paying back all your credit card debt on time. Use your credit cards wisely, do not let any balances carry forward to the next month and make your payments on time, preferably within the payment window set by the credit card company / banking / financial institution.
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