Credit debt – how to make it work for you

Date Posted: November 25, 2022
By: Maggie Marques

Credit debt woes have been plaguing us for the longest time. Is it possible to manage debt? How can we make our credit work for us?

First, we need to understand what credit is about. Whenever you borrow money from a financial institution – banks, credit cards, among others – you need to pay it back at a particular time and with the corresponding fees and interest.

How to make credit debt work for you

Getting into credit debt is not necessarily bad. If handled properly, credit cards can help you pay for your needs for an extended time without interest and fees. Here are some tips that can help you start taking advantage of your credit:

  • Pay your credit debt in full on every due date. The credit card company will not charge you any fees or interest when you pay in full. So, imagine the days when you can have this revolving fund available as long as you only charge what you can afford to pay in full. The key here is not to swipe items you can’t afford to pay in cash – even if it is a once-in-a-lifetime sale of those luxury items you have been eyeing for the longest time.
  • Always pay your bills on time. Late payments will set you off by up to $39! Plus, late payments will knock down your credit score and will create a negative impact on your history. So make sure you pay your bills on time.
  • Your credit card comes with perks. Be familiar with your card’s features. Some popular rewards are frequent flyer miles, cashback, hotel discounts, and loyalty points. If you are a frequent flyer, free travel insurance or even free airport lounge stays for free is something to look forward to.

Credit cards also offer a buy now, pay later scheme depending on the season that sometimes goes with zero interest on the items you buy. You don’t have to be afraid of credit debt as long as you use your cards responsibly.

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