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Credit Cards = Big Responsibility

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August 8, 2006

About This Editor: A parent and librarian just trying to share some information with the world. Currently a Stay-At-Home Mom of 5, and who jokingly refers to herself as "supermom", she enjoys writing children's books, erotica and anything else that interests her. If you would like to see Ms. Lanham write on a topic that interests you, email her at rlanham_arscompendium@yahoo.com.

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When you have a credit card, you may feel that it is great. When you have a credit card, you will have an advantage when you wish to purchase items online, make travel arrangements, or when you forgot to visit the ATM and need a quick way to buy something.

However, you can also find yourself in big trouble when you have a credit card. You need to watch what you spend very carefully when you use one. Many tend to overspend their means, which can lead to problems in the future.

So, when you have that credit card you’ve always wanted, recognize that you have taken on a big responsibility. Here are some facts and tips you need to know that should help you to avoid any problems and allow the cards to be a beneficial addition to your wallet:

1.      A credit card charge is actually a mini loan, usually with a very high interest rate! Everything you charge on your credit card is your responsibility and will need to be paid for.
2.      At all times you should know what your credit card balances are. By knowing these balances, you will know how much debt you are in and whether you should buy that item you are currently looking at. Even those little $5 purchases will add up, as will the interest you are paying on them.
3.      Keep all your credit card receipts. Compare them to your credit card statement at the end of the month. With this comparison, you will know if a fraudulent charge is on your statement or if too much was charged. With that information, you can call your credit card company right away.
4.      Don’t loan your credit card or give the number to anyone! This means your family and friends, too. Although most times these individuals can be trusted, you won’t be able to track purchases you are not making yourself.
5.      If you cannot repay a charge, don’t charge it! Having a bad credit rating can hurt you when you wish to get a loan for a home, a car, a boat, or another other form of credit.
6.      Keep paying those bills on time! When they are paid on time, you will avoid any huge finance charges and high interest amounts. Miss a payment, you will add penalty fees plus interest to your total balance, which will just keep getting higher and higher.
7.      In addition to paying them on time, try to pay off your credit card balance each month. A budget will come in handy here, as you will know exactly what you have allotted for credit card spending. This will help you in the long run, as you won’t be adding interest to your balance each month.
8.      Fraudulent and unauthorized charge – you are still responsible for $50 in some cases!
9.      Never pay a credit card bill with another credit card! This will lead to higher spending, higher balances, and higher debt that you may end up buried under.