Ever seen people stuck up with huge amount of debt just because they used credit card? Or do you fear to use credit card? You have hit the right link and you got to read this as we get you tricks to stay debt free while you use your credit card. Its no rocket science but simple math and a pinch of common sense.
The cash crunch is always there so one would always want to pay later for his/her expenses. People want to spend but don’t have the required amount of cash to pay. This was somewhere the concept behind inventing the credit card so that people are able to fulfill their present needs and pay later. But whenever one uses the credit card there are certain assumptions that they make. Or else there is a tendency to shift the deadline until the payment level goes too high and ultimately the person is found in huge debt. To avoid such situations one could always follow certain tricks here and there to stay debt free while using your credit card.
- Know your income well: Firstly knowing the reality is very important as you cant spend more than you would earn. So knowing the amount of income that stays in your account every month is an important consideration to make. You could be issued the credit card but then it makes no sense to invite trouble when you know you cant. And there is always a step by step movement to spend for all of your needs and aspirations. It cant be an overnight process.
- Set a limit: So when one owns a credit card, generally he/she shops or spends enormously forgetting that he only will be liable to pay the amount some day. So to avoid the debt trap cycle, one must always set a limit to the spending. Since you know the income that is sure to come your way every month, you can set the limit to your expenses accordingly. Although the limit of the credit card will entice you to shop more this time and manage the next time, but then this may get you to the debt cycle.
- Schedule your expenses: there are certain expenses which are just done due to the limelight of the market or society but in reality you don’t need it at any urgent level. So be smart and schedule your expenses so that you make the best use of the credit card and say debt free.
- Make buffer limit: Since you have followed the above steps, you have been able to manage your funds in the right manner. So to add to your expertise, you could set a buffer amount for any emergencies to arise in future. This saves you from the compromise you will have to otherwise make while shopping freely.
- Use a software: In this digitally advanced age, almost everybody owns a smartphone. So you could download a software to track your expenses and suggest a cut down on your unimportant expenditures, etc.
So owning a credit card is not that difficult, right? also staying out of the debt requires following the above mentioned steps and having patience while skipping to buy something. You will own the thing someday.