Credit cards are really helpful as long as you make the payments on time. Once you become delinquent in your payments, you'll easily be engulfed in debts. Since women are more shopaholic compared to their male counterparts, they are crazy fans of their plastic cards as they don't need to think of cash or credit while shopping. And the result they undergo later is the stress of credit card debt. It is really a challenge for you to manage your credit card debts if you are a shopaholic. You can do it and with just minimal efforts. You just need to be determined to save more and spend less. Take a look at how you can manage your plastic money well.
Use paper more than plastic
Yes, you need to use cash more than your cards. Cards have higher interest rates and when you default, you not only have to pay off the principal, but also the additional interest. So it's better if you use cash instead of credit cards. If you're careful with your cash, you won't use much and save more for your future. So when you won't have cash, you won't have the urge to spend and that'll save your hard-earned money and give you financial security.
Know the basic math
Elena Jara, Director of Education with Credit Card Canada Debt Solutions, said, "Before you can read, you have to understand the alphabet. Unless you understand how to calculate interest, it's going to be a little hard to really understand the total cost of credit." It is very important to know the credit card basics. Try to educate yourself about savings, credit cards, interest rates etc. Thus you will understand how your investment will take shape in future.
Regular credit card check
You need to log on to the websites of the cards you use. That way you'll be able to see your credit card details and the limits on each card. There are times when the credit card merchants and companies may increase the credit card limits or may even reduce. You must check your credit card status to see if your interest rates have been hiked or not. This way, if your credit cards' limits or rates are increased, you can talk about or negotiate with your credit card company.
Set a forced savings plan
Try to set an automatic savings plan by opening a savings account where 10% of your income will be deposited each month. Thus you won't feel provoked to spend it and the money will automatically be saved in your savings account.
Balance transfer, think twice
If you want to pay off your credit card balances with a balance transfer credit card, think well before doing it. The balance transfer cards usually have a lot of terms and conditions and the interest rates may increase after a certain time period. 3% or 4% of your money is charged for transfer of balance and also with a new line of credit, your credit score gets reduced. If you want to pay off your credit card balances, you must pay them off yourself.
Lastly, these are the ways you can manage your credit cards without inviting any harassment in near future. Apart from these, you can also try not to get any credit cards if you don't need. Be happy with the number of cards you have and don't add to the stock if not needed.