It is a good idea to think about making sure that when you have a credit card, you use it to your advantage. They can be really handy but also really expensive, but there are things that you can do which will mean that you will be able to use one and not pay out very much money or any money at all.
Always Repay in Full
It is a good idea to make sure that when the credit card statement appears, that you always repay the whole balance. Then you will not need to pay any interest on what you have bought. You will then get the advantages of using a credit card for free. You may wonder what the point will be of getting one if you just repay it in full each month but it can actually be very helpful. It is a safer way to buy online because you get some free insurance so if the products do not turn up you can get the money back through the card issuer. It is also less likely to cause major problems if someone gets your details. If they get you bank details form a debit card there less protection and you can potentially lose all your money in your current account and possibly other linked account too but with a credit card, there are fraud checks and it is unlikely that you will lose much money at all.
Set up Direct Debit
If you want to make sure that you repay the full balance each month then it is wise to set up a direct debit to do so. This will mean that you will never forget and this is important. You could find that you are distracted or that you are not available to make the payment and then you will be charged, so it is much easier to set up the direct debit to do it for you. You do need to be careful though and make sure that there will be enough money available to pay for it. Try to make sure that you set up the direct debit on the day after you are paid so that you will have money available, but also be sure that you have not spent too much on other things.
Keep Track of Spending
It can be wise to keep a track of your spending to make this a lot easier. Some people choose to keep a spreadsheet and note what they are paid and what bills they need to pay and things like this on the spreadsheet. However, others prefer to write it down in a notebook. It might seem a bit over the top, but if there is a risk that you might overspend and not be able to repay the card then it is worth doing. If you feel that this is just too much effort, then check your balances frequently instead. Go online a few times a week and look at you bank account and credit card balance to check what is going on with them and whether you will have enough money available to pay the credit card. It might seem like a hassle, but it is worth it and it gets easier the more you do it, especially once it becomes a habit. It is a good idea to make sure that you do this though and then you can be completely confident that you will be able to repay the card in full each month and never have to pay for it and then you will be taking full advantage of it.