Credit Card Debt

Many financial experts totally hate credit cards because of how many people suffer from credit card debt. However, it can be a very beneficial tool for someone desiring to increase their credit score. A high credit score will allow you to buy a home, settle in a location and continue working on your dreams next to your babies. When you're figuring how you feel about them, consider these top tips for every first-time credit card holder.

1. Only use 10% of the balance.

When it comes to credit cards, a lot of people struggle because they look at credit cards as free money. When you get to the cash register, all you need to do is swipe. As a result, you don't feel the immediate impact of losing money. Don't swipe until there's no more credit left on the card. Stop at 10%. It's an easier amount to pay off and you'll be less likely to get yourself in a financial abyss.

2. Pay off the balance immediately.

Credit cards have their advantages which include the point systems and the opportunity to build a great credit score. In order to keep this up, you'll need to keep the money to the side and pay off the balance when it's due. Don't swipe the card knowing that you don't have the money to cover the expenses. Most people do this and that's why they experience serious credit card debt.

3. Use it for dire emergencies and necessities.

For many people, necessities include groceries, gas and utility bills. If those don't go over the 10% limit of your credit card, pay for them using the card and pay the card off at the due date. These are things you have to buy anyway. This is why it's great to put them on a card and pay it off each month. You should already have an emergency fund so don't think of the credit card as that. However, if someone passes away suddenly and you need to book a flight, this is an expense you can place on your credit card. Just make sure to pay it off on