A credit card isn’t just a piece of plastic but it is a very powerful tool. These cards give people the power to buy things in advance without paying in cash. Yes, credit cards can be very beneficial. During times of emergency, having one can also be a life saver.But being a credit card holder isn’t simply about convenience. This thin plastic card can put you in danger if you fail to use it correctly.

Be Careful How You Use It
Credit cards have due dates. If you don’t pay on time, you will be subjected to finance charges and interest rates. True, credit card issuers do not require you to pay your balance in full as long as you can submit the minimum amount due on time. But be careful! If do this all the time, you’ll end paying more than the total cost of your original purchases.
Not paying attention on how you use your credit card can lead to financial disaster. Surely, none of us wants to learn the hard way. So what can you do to avoid bad debt especially if you’re a new credit card holder? Here are helpful tips you must consider to avoid credit card debt:

Don’t become a slave to your credit card. Do not keep on spending without considering how you are going to pay it back. Always keep track on your purchases. In this way, you’ll know how much you spend in a month and you can compare it with your earnings. Set limitations. Try to distinguish between “WANT” and “NEED”. Only use your credit card if you absolutely NEED something. Avoid impulse buying.

Protect yourself from Fraud. Some people may devise and carry out schemes to steal your personal information. Never give away your credit card number, expiration date and other card details over the phone unless you know the person or the company you are dealing with.Control your spending. Some people spend money in an attempt to boost their reputation with friends and associates. This tendency can cause real financial problem especially if you have multiple credit cards. Uncontrolled spending can lead you into deep financial problem that would be difficult to get out of.

Don’t acquire too many cards. Some people try to have as many cards as they can, thinking that it would improve their credit rating but one or two credit cards should be enough. The most important thing about being a cardholder is to be consistent with your payments.