By being smart with credit cards, you can stay out of debt and reap great “REWARDS”. Below are a few steps that are simple, but often unknown:
Read the fine print! Credit Card companies often have policies in the small print that will have you paying more in charges and rates if you are not careful. For example; You have a 0% intro rate for 6 months, but if you don't pay your monthly payment on time once within those 6 months, your rate skyrockets to 18% or more!
Use your card for large ticket items, not small items. Paying for your double latte each day is only going to add more to your debt than rewards. At the same time, do not buy a lot of unnecessary stuff to try to increase your rewards. You will only increase your debt and have a lot of clutter!
DO NOT miss your monthly payment! This just adds to your debt and makes your credit card provider richer. While you are crying about how to get out of debt, they will be doing the Happy Dance while sipping margaritas on some exotic island. If you can't remember to pay your bill each month, sign up for online banking (which is often offered free – check with your bank) and have the your bill automatically paid each month.
These simple steps will help you enjoy your reward card and keep your budgeting under control. Mr. Creditor will not be dancing happy on your dime!