Half of the world’s credit-active consumers are battling to make their monthly payments. It has always been easy to haul out your piece of plastic and pay for whatever you like. These cards can be a blessing when used responsibly but many people don’t use them properly.

We look at ways you can manage your credit card to your advantage.

A helpful piece of plastic

With a credit card, you have to remember that you are actually spending money you don’t have. These cards are considered unsecured debt because you’re borrowing money without putting up collateral. They are tremendously useful as they can be used to buy things or even pay bills. Every cent you spend on the card however, has to be paid back, and with interest.

Managing a credit card requires you to pay as much on it each month that you can. Paying the minimum amount won’t bring the debt on the card down. Therefore, each time you want to haul out your credit card, just ask yourself if you can afford the payment at the end of the month.

The ultimate source of credit card knowledge

There is a lot to know about these credit cards if you want to manage it properly. It is why MatchFinancial is of such value as they provide lots of credible, expert information on financial matters. Whether you’re interested in a personal loan, a credit card or you want to know how debt consolidation can help you, they have all the information you need.

The information will guide you on which credit card will suit your needs and how to use it and manage it properly. You’ll learn how using a credit card responsibly can help you build a solid credit history.

Your payment history plays a role in determining credit scores, and managing your card well will make it far easier to apply for a loan in the future or to get approval for buying- or renting property.

Know the good parts and the risks

You have to be very sensible with managing your credit card, otherwise you can unwittingly find yourself with a lot of debt. When you use your card correctly, it can be a wonderful friend to have as they come with some amazing features. As mentioned, they can help you build up a good credit score, you can earn rewards and you can take out interest-free loans.

However, there will be some occasions when you will have to decide whether it is wise to use your credit card as sometimes it makes more financial sense to apply for a personal loan.

This is why it is so useful to be able to be guided by useful financial information – you get advice from financial experts. They will tell you that to manage a credit card well, you need to know how a credit card works. For instance, each time you use your card to buy stuff, the amount you’ve spent is added to the balance and this balance is the amount you owe on your credit card.

Can you manage your card responsibly?

Just remember that while a credit card is wonderfully useful, there is another side to it. Not managed properly, it can harm your credit score. Get to know your credit card and find out about balances, APR, payment due dates, rewards credit cards, minimum payments, late and missed payments, annual fees and credit score among others.

With all this at stake, before applying for a credit card, the wisest move is to consider whether you’ll be able to use the card responsibly or allow it to take you down a path of irretrievable debt and misery.

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