With the advancement of technology comes the improvement of banking and financing processes. This includes transaction that involve a credit card. Credit cards have started a long way back but banking institutions have kept their credit card services improving.

Credit card nowadays have become one of the most essential financial tool for payments and transactions. Credit card have become so infused in any financial process that involve payment that it becomes a very essential tool for convenience and efficiency. But having a credit card requires proper management. Without it, you will most likely end up in debt.

Here are 2 ways of how you can manage your credit card properly.

  1. Monitor your usage and pay in full

Credit card use is for convenience and efficiency. Always have that in mind. It is not used to replace money for which you can pay your purchases. Having this in mind creates a mindset of purchasing with what you have not with what you can. A credit card gives you a credit line that you can use which is actually a loan from the bank. This loan earns interest and eventually needs to be paid. Without having enough cash to pay your purchases, the credit (or loan) stays outstanding until it has been fully paid. Unless you have enough cash to pay off the purchases you charge with your credit card, avoid using them.

  1. Avoid revolving your credit as much as possible.

The convenience of a credit card is having the ability to revolve your credit and only paying a minimum amount due from the total outstanding balance. It would be a good way to create an opportunity to pay off a large purchase slowly but making sure that you pay more than the minimum amount. What is important is that you should be able to create a monthly payment scheme that can eventually pay off your outstanding balance in a short period of time. Avoid paying just the minimum as you are only paying for the interest.

Managing your credit card is the best way to avoid getting in debt. Never take a credit limit for granted as it can cause you to slowly get into debt.