If you own a credit card, then you might want to read a few tips for a healthy credit card usage. It has been observed that once we get a credit card, there is a tendency to switch to the credit card from cash wherever possible. Once this becomes a habit, you are surely going to fall in a debt trap, therefore make a slow beginning by using the credit card only when you cannot use cash conveniently, and avoid using a credit card for your daily needs purchases.

A credit card tremendously increases the convenience and ease of our purchasing power, but we should not forget that the money used by us still needs to be repaid. Therefore, we should make wise decisions by purchasing only those things which we really need and not those things which we simply want to have, such as a new Samsung PS42A457 plasma TV. The advantage of using a credit card is that you can have a lifestyle today which you are sure to afford tomorrow at a reasonable cost.

There is normally a provision of making a minimum payment of say 5% of your total outstanding of the previous month and the balance can be carried forward. Use this provision only in the case of some emergency and do not develop this attitude of making only a minimum payment. Because once making only the minimum payment becomes a habit, it will take a long time to pay off your debt and this will increase the burden of interest charges. It is always advisable to clear all your credit card payments as quickly as possible once you receive your outstanding statement.

You should always be aware of the interest rate periodically charged on your credit card and be on the look out for a credit card, which offers a lower interest rate than your existing credit card. This way you can negotiate for a lower interest rate.

In case you are not able to pay any amount on time for any particular month, it is always better to inform your creditor in advance and politely explain to them of your problem. Mostly you will be assisted and chances are that if you request for a late fee waiver, you may not even be charged.

Tags: credit card, debt, finance, interest