Managing Extra Credit

Credit cards can be advantageous as they provide a degree of financial freedom and convenience not afforded by other options.

There are pitfalls associated with credit cards, however. It can become habitual to use them for frivolous items. Frequent purchases can rapidly add up and turn into an expensive debt.

Therefore, it is best to follow a few guidelines:

• Only use credit cards when the situation requires it
• Choose a credit card with a low monthly limit
• Set a limit on the number of times a credit card is used per month
• Only make purchases you can already afford
• Pay off all credit card debt monthly to avoid incurring interest charges

When choosing a credit card, pay careful attention to interest rates and always look for any additional fees associated with the card. Having a credit card is beneficial, but comes with a degree of responsibility.

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