9 Ways To Use a Credit Card Responsibly and Avoid Debt


There’s no better way to prove you can handle credit than to have credit and use it responsibly. If you’re building your credit and you want a credit card for certain purchases, there are several ways you can use it to your best advantage instead of ending up drowning in debt. When you know how to use them effectively, they can be highly useful tools.

Pay Off Your Balance Every Month

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You can use your credit card every month if you like, but be sure to pay it off completely each month. If you carry a balance, it will be harder to pay it off later with the addition of interest to your debt. Credit card debt can snowball quickly, so never charge anything that you can’t pay off that month.

Use the Card for Needs, Not Wants

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Do you need that item you’re thinking about buying? If not, avoid using your credit card for it. These cards should be used when you need something and not when you’re making an impulse purchase. Once you start to think of it as a way to buy whatever you want, you’ll soon have a lot of debt on your card.

Never Skip a Payment

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When you don’t make every payment on your credit card, the balance quickly grows. If you skip a payment one month, that means you’ll owe more the next month, and you may not be able to make that payment. Skipping one payment can be a slippery slope that leads to a large amount of debt that just keeps getting bigger.

Use the Credit Card as a Budgeting Tool

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When you use a credit card to pay for items, it’s easy to see exactly how much you’ve spent. When you’re trying to spend a specific amount each month, checking your credit card is a helpful way to see where you are about your budgeting goals. You may save one category of your spending for your credit card and then pay off that amount every month to avoid debt.

Use a Rewards Card

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When you use a rewards card, you can build up several reward types. Many cards pay you in miles that you can then use for money off when you travel. Others pay in cash back that you can use for anything you like. As long as you pay off your card every month, you’ll be getting those rewards at no cost to you. This is a great opportunity to make your spending work for you.

Report a Lost or Stolen Card Immediately

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If you don’t know where your credit card is, it may be in someone else’s hands. Always keep it where it’s safe. If it isn’t in that spot, you’ll need to report the card as being lost or stolen. This will shut down the card, and you will be sent a new one in the mail. That way, no one else can start charging things with your card.

Check Your Monthly Statements Carefully for Accuracy

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It’s important to know how much you spend, and it’s also important to know whether there are any mistakes with your card. If a vendor charges you twice, for example, you need to know that right away so that the other party can be notified to fix the problem.

There are a lot of scams out there that involve credit cards, and you need to make sure that you aren’t the victim of them. Check your statements every month to make sure that everything on your account is correct.

Be Aware of Any Fees You May Be Charged

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Do you know what your credit card will cost you? Many credit cards come with a yearly fee. If you don’t have an annual fee, there are likely other fees that you could be subject to. One of these is a fee for being over the limit.

If you charge more than the credit amount given to you by the card, they will likely add a fee to what you owe. The same is true if you make a late payment. A late payment fee is extremely common. If you want to do something with your card such as transfer a balance to it or use it for a cash advance, there will be other fees you’ll owe.

Monitor Your Credit

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You should always know what’s on your credit report in case there are any mistakes. Mistakes in credit reports are very common, and they can hurt your rating. There are several free apps and websites that can help you check your credit score for free. Get into the habit of doing this regularly to stay on top of your credit report.

Using a credit card responsibly can be a great tool for raising your credit score. As long as you’re careful about using it and checking on it, you can get a lot from your card and build toward a better financial future.

7 Frugal Habits of Millionaires

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Most people think millionaires aren’t all frugal, but did they ever stop to wonder how millionaires got so rich in the first place?

Maybe, just maybe, they started out with modest, frugal lifestyles to get to their millionaire status. Here are some ways in which millionaires lead their lives to live up to their millionaire rankings.

7 Frugal Habits of Millionaires

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I’m super frugal, and one of my passions is sharing my frugal living tips with everyone.

Here are some of my absolute favorite frugal tips to help you get started on your journey to frugal living.

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

15 Things That Are No Longer Worth It Because of How Expensive They Have Become

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Everything comes with a hefty price tag these days. From indulgences to essentials, the cost of living keeps rising. We used to consider certain items affordable options, but now they’ve become so expensive that they’re no longer worth it. Here are 15 things that have lost their affordability and make us wonder if they are worth it!

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28 Practical Ways Frugal People Save Lots of Money

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Saving money doesn’t have to mean saying goodbye to life’s little indulgences. With a few smart tweaks, you can stash away cash for that dream vacation, rainy day fund, or splurge-worthy purchase without feeling like you’re on a constant budget patrol.

Think of it as a side hustle that pays off without the extra hours. Whether you’re looking to conquer debt or simply boost your bank account, these tips are guaranteed to put more money in your pocket, painlessly.

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14 Ridiculously Random Tips That Could Save You Lots Money

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Want to save some money? There are so many ways to save money that are published in articles all day, every day.

It can be tiring to sort through them and find the ones that work for you, so we decided to scour the internet and find some of the best ones to share with you. But we couldn’t decide which ones to share with you, so we just decided to share the ones we liked, which means that these are pretty random!

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