Credit Cards 2012: Shop around; but, be honest with yourself!
“You really have to consider your spending habits, how disciplined you are, and then you got to size the offers up,” advises Vera Gibbons MSNBC financial analyst; and, she explains some of the products available, the processes required and the cautions involved in acquiring and using a credit card, plus the serious consideration that is necessary regarding the range and consequences of the terms of the card agreement.
Be honest with yourself; if you cannot permanently maintain enough money in a designated account for the specific purpose of paying the total, monthly balance of the credit card plus the discipline of paying off that entire balance every month, then you should not have a credit card!
It is advisable to keep the use of the credit card limited to spending on cost-of-living items that you have to consume and use: such as food, housing, utilities, transportation and other non-discretionary items. For items that are not a necessity, save money for those non-necessity (discretionary) items before you buy them and hold that money in the account that you have designated specifically for your credit card payments in order to pay for them in full by the credit card’s monthly statement due date.
This financial procedure will benefit not only your ability to monitor the flow of your money: where it goes, by how much and how fast; but also, it will help improve your credit rating. By living within your means, you will be better financially positioned to deal with unforeseen incidents when they arise. – $tock Mom
(video 3:31)
