Managing a credit card can really be rocket science for many people, and you’re probably caught right in the middle of that category! However, if you apply some very simple tips and techniques for managing and monitoring your credit card, you’ll find that it’s a very workable tool.

In reality, you don’t always have to work for your credit card. You can, instead, get your credit card to work for you based on how well you can keep track of things. In fact, if you pay attention to the trends of credit card owners, most people end up indebted because they simply don’t pay enough attention to the details!

Use these handy tips to make your credit card work for you:

1. Monitor your due dates. When it comes to managing and monitoring a credit card, timing is definitely the key. The first logical thing to consider would be the importance of paying your bill on or before the due date, and most people are conscious of this. However, not many people consider the option of using the card to delay paying their other bills:

• Make a mental note of your statement generation date.
• Use the card to pay your other bills the day after the statement date.
• Those expenses won’t show up on the credit card bill until the next statement.

2. Make lump sum payments. A technique that many people use is putting huge payments on the credit card and then using it to make other payments. Once you make a lump sum payment before the statement is generated:

• That amount will be reflected on your statement.
• You can use the card with the newly added payment to settle other expenses and earn credit card rewards points for paying all your regular bills without incurring additional debt.

3. Include interest with your minimum payment. Perhaps you’re like many of us in only being able to settle the minimum payment on credit card accounts each month. But instead of paying just the minimum payment stipulated on your statement, consider paying that amount plus the figure reflected as interest for that month. With this technique, you’ll:

• Be able to cut back on recurring expenses for interest although you won’t be totally debt free.
• Come closer each month to completely settling your credit debt, even though it’ll be a bit slow.

An Additional Tip to Consider

Financial institutions are pretty competitive when it comes to the products they offer to customers. Therefore, you can easily find one that offers better rates and consider switching to that institution.

Your credit card does not always have to be viewed as the enemy! It can actually be a very helpful tool when financial needs arise, especially when those needs are totally unexpected. What matters most is how you manage the card and how well you do at successfully repaying the debt.

You’ll undoubtedly find that there’s no need to be an accounting guru to get your credit card on your side. You simply need to understand the basics of debits and credits, interest, and due dates. Everything else will fall right into place!

Silvana Jimenez