Some people actually think that shopping using the credit card is one of the best ways to save money, especially if the credit card has attractive rebates offers. But unfortunately, using credit card is the same as ‘borrowing money’ and this practice, whether through credit card or cash, does not at all help them to stabilize their finances, let alone save them money. With the interest applied on your credit card, you will actually end up paying more than you have to.

Many people use their credit card because somehow they think that it will save the cash they have at hand. But you need to remember that credit cards are probably the most expensive loans made by banks, departments stores and gasoline companies.

Say “No”

There will always be times where you give in to the temptation that credit cards offer. This is only natural. But to avoid having debt problems, the best way to go about it is just by saying “no” to credit cards. Experts say, to empower you to say “no” to credit cards is to get a reflection and financial analysis. Try and find out how much your credit card issuers get from the transaction you engage with them. You will be amazed and have hesitations in maximizing its use.

But if you really think that you must have a credit card, choose very carefully which to use and how to use it. When you are offered one, consider first what the purpose of this card is going to be. Why do you need this credit card? And how are you going to use it? In my personal experience, the only time that I use my credit card is to do online transactions on Amazon.com or for my Paypal account. Other than that, I don’t use it ever.

Also, when filling out an application for a credit card, consider whether you are sure that you can comply with the conditions of having another card. Knowing your limitations and capabilities will help you a great deal to decide whether to get a card or not. If the reason to get a card is to save money, pay your bills on time so that the interest and charges are as low as possible.

Lastly, to ensure that you are keeping track of your finances, compile monthly statements and keep copies of sales receipts to double check the rates of the charges.

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