Finance Tips: Common Credit Card Problems

In my own experience, owning a credit card was a way to develop my financial capabilities and access to better bank and finance products and services. Most people view credit cards as a personal bank account that you could pay later with interest, but this viewpoint is a formula sure to make it difficult to get out of debt. Here are some common credit card problems owners have.

1.     Paying on Time

One time, I had problems paying my credit card on time simply because I maxed out my credit card. I could only pay for at least 40% of the total debt I have. Note that my credit card’s limit is 3% every month of unpaid bills. Paying on time is a problem if you don’t take note of the things you purchase with your card, or if you let it go out of hand.

2.     Paying in Full

Today, when I purchase items with my credit card, I make sure that I could repay it in full. Repaying your card on time and in full helps you avoid trouble with big interest rates, keeps your card free and helps you increase your credit score as well.

3.     List Them Down

Regardless of how big or small your credit card purchases are, list them down. I developed the habit of carrying a small notebook or opening a listing application on my smartphone to list down the product and the price of the items I buy with my credit card. This is helpful because it helps me avoid maxing out my credit cards.

4.     Use Actual Money

 Your credit card and all its financing services are helpful if you’re only buying the things you need. Today, when I buy something I want that will not generate income, I would save up for it. Using actual money instead helps you develop monetary discipline and patience.