Credit Cards don’t come with a user manual. What we know about credit cards and their use comes from television, watching our parents and friends. Like any tool there are some guidelines you should follow before jumping in and playing in the game of debt.

Here are some “Usage Rules” for credit card users

Credit Card Usage No No’s

• Purchasing with a Credit Card of Everyday Items

  Using your credit card like cash for everyday purchases like food and clothing can quickly pile up debt and start you with a habit of bad spending choices. For items you buy on a regular basis use cash or a debt card but leave the credit card hidden away in your purse or wallet. Read this overview on credit

• Paying the Minimum

  When you make the minimum payment on your balance each month you’ll increase the amount of interest it costs you to buy items and increases the time it will take to pay off the balance.

  If you cannot pay off the balance at the end of the month pay as much as possible on the balance and stop charging until you get caught up.

• Living Large

  Living above your lifestyle and earnings can quickly spiral into deep debt. Face the truth! If you cannot afford to buy the item today you probably will not be able to afford it next week or next month.

• Closing One Card for Another

  With so many deals on credit cards hitting your mailbox each week opening a new card can be tempting. However, you need to know the impact closing a card can have on your credit score.

Credit Card Usage Do’s

• Planning Purchases

  Just because you can buy it does not men you need it. Make smart choices on what you buy and plan your purchases.

• No Money No Pay

  If you cannot make your payment on time let your creditor know in advance. The worse action you can take is not paying at all. Creditors want to be paid and usually will work with you if they know the situation. Call your creditors, tell them of what is going on and ask for the late fees to be waived.

• Stay Within Limits

  Having a credit limit of $10,000 does not mean you should keep a balance of $9,500 on your credit card. If you cannot pay the card balance off every month, try to have no more than 30% of your credit limit used up.

  Keeping the balance low will help with your credit score and a lower balance is quicker to pay off than a high one eaten up with interest charges.

• Ask for a Lower Rate

  Always know the interest rate on your card. Don’t be afraid to contact your credit card company and simply ask for a lower rate. If you have been making payments and not running behind they should be more than willing to lower the rate.

Learning to use credit smartly and planning your buying will keep debt to a minimum and life less stressful!