[et_pb_section fb_built=”1″ admin_label=”Banner Image with Heading and Text” module_class=”vertical-align” _builder_version=”4.16″ background_color=”#e7dff3″ use_background_color_gradient=”on” background_color_gradient_type=”circular” background_color_gradient_stops=”rgba(91,37,175,0.44) 15%|rgba(91,37,175,0) 70%” background_color_gradient_overlays_image=”on” background_color_gradient_start=”rgba(91,37,175,0.44)” background_color_gradient_start_position=”15%” background_color_gradient_end=”rgba(91,37,175,0)” background_color_gradient_end_position=”70%” background_image=”https:\/\/nomoredebts.org\/wp-content\/uploads\/2020\/09\/looking-at-credit-score-on-the-laptop_hero.jpg” min_height=”550px” bottom_divider_style=”wave2″ bottom_divider_color=”#e7dff3″ bottom_divider_height_tablet=”70px” bottom_divider_height_phone=”50px” bottom_divider_height_last_edited=”on|phone” background_last_edited=”on|phone” background_size_phone=”cover” background_position_tablet=”top_right” background_position_phone=”center_right” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row custom_padding_last_edited=”on|phone” admin_label=”Row” _builder_version=”4.16″ background_enable_image=”off” max_width=”100%” custom_margin=”||||false|false” custom_padding=”||90px||false|false” custom_padding_tablet=”” custom_padding_phone=”||80px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text admin_label=”Heading” _builder_version=”4.16″ text_font=”|600|||||||” text_font_size=”42px” text_line_height=”1em” text_orientation=”center” background_layout=”dark” module_alignment=”center” custom_margin=”||26px|||” animation_direction=”top” text_text_shadow_style=”preset2″ global_colors_info=”{}”]<\/p>\n
Learning About Credit<\/p>\n
[\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.16″ text_font_size=”22px” text_line_height=”1em” text_orientation=”center” background_layout=”dark” module_alignment=”center” custom_margin=”||||false|false” custom_padding=”||||false|false” animation_direction=”bottom” text_text_shadow_style=”preset2″ global_colors_info=”{}”]<\/p>\n
Discover how credit works and what to watch out for.\u00a0<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” admin_label=”Intro Paragraph” _builder_version=”4.16″ background_color=”rgba(91,37,175,0.15)” custom_padding=”0px||130px|||” custom_padding_tablet=”||117px||false|false” custom_padding_phone=”||74px||false|false” top_divider_style_last_edited=”off|desktop” bottom_divider_style=”ramp2″ bottom_divider_color=”#ffffff” bottom_divider_repeat=”1x” bottom_divider_flip=”horizontal|vertical” bottom_divider_style_tablet=”” bottom_divider_style_phone=”” bottom_divider_style_last_edited=”on|phone” bottom_divider_height_tablet=”70px” bottom_divider_height_phone=”100px” bottom_divider_height_last_edited=”on|phone” bottom_divider_flip_tablet=”” bottom_divider_flip_phone=”horizontal” bottom_divider_flip_last_edited=”on|phone” da_disable_devices=”off|off|off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.27.4″ width_tablet=”80%” width_phone=”80%” width_last_edited=”on|desktop” custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_dmb_breadcrumbs font_icon=”%%20%%” use_home_icon=”off” use_home_text=”on” show_custom_taxonomy_crumbs=”off” _builder_version=”4.27.4″ body_text_color=”rgba(102,102,102,0.8)” link_text_color=”rgba(42,209,61,0.8)” custom_margin=”||50px|||” custom_padding_tablet=”” custom_padding_phone=”20px||||false|false” custom_padding_last_edited=”on|phone” animation_direction=”left” global_module=”6437″ saved_tabs=”all” global_colors_info=”{}” link_text_color__hover_enabled=”on|hover” link_text_color__hover=”rgba(90,39,178,0.4)”][\/et_pb_dmb_breadcrumbs][et_pb_text _builder_version=”4.27.4″ header_2_font_size=”30px” global_colors_info=”{}”]<\/p>\n
Do you ever wonder how people without credit card debt do it? How do they\u00a0use credit cards but not end up in debt<\/strong>?\u00a0<\/p>\n Once they start using a credit card, most people find it hard to imagine their life without one again. Credit cards are convenient, let you\u00a0accumulate\u00a0reward points for trips or merchandise, and even help you avoid service charges in your bank account because you don’t debit or withdraw cash as often.\u00a0<\/p>\n However, if you’re not careful, your\u00a0flexible friend<\/a> can quickly become a foe. When your bank account is running near empty, paying for items you need or want with credit can cause a lot of problems. Here are 12 tips to use a credit card but not end up in debt:\u00a0<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|tablet” next_background_color=”#e4f8e0″ _builder_version=”4.16″ _module_preset=”default” custom_padding=”0px||100px|||” custom_padding_tablet=”53px||100px||false|false” custom_padding_phone=”” bottom_divider_style=”curve2″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” module_id=”get-cell-phone” module_class=”custom_row” _builder_version=”4.16″ width_tablet=”80%” width_phone=”80%” width_last_edited=”on|phone” global_colors_info=”{}”][et_pb_column type=”1_2″ module_class=”vertical-align second-on-mobile” _builder_version=”4.16″ animation_direction=”left” custom_css_main_element=”margin: auto;” global_colors_info=”{}”][et_pb_text _builder_version=”4.16″ header_2_font_size=”30px” custom_padding_tablet=”40px||||false|false” custom_padding_phone=”” custom_padding_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n Many people run into trouble with credit cards because they spend more than they can afford to spend. Help yourself avoid this trap by saving up for purchases. Before buying anything with a credit card, make sure you could pay for it with cash on the spot. That way you\u2019ll get the benefits of using the card without the risks of not being able to make the full payment on it.<\/p>\n The trick is to make sure that the money you\u2019ve set aside for each credit card purchase doesn\u2019t get spent on anything else. One way to do this is to open a savings account dedicated to this purpose. Call it your \u201ccredit card payment\u201d account to help you organize your money<\/a> and resist temptation. Then when the bill arrives use the money in the account to pay it. With all the money already saved, it will be easy to do!<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ module_class=”first-on-mobile” _builder_version=”4.16″ animation_style=”slide” animation_direction=”right” animation_intensity_slide=”2%” custom_css_main_element=”margin: auto;” global_colors_info=”{}”][et_pb_image src=”https:\/\/nomoredebts.org\/wp-content\/uploads\/2020\/09\/managing-finances_2colm.jpg” alt=”Canadian Managing Finances on Laptop” title_text=”managing-finances” align_tablet=”center” align_phone=”” align_last_edited=”on|phone” _builder_version=”4.16″ max_height=”500px” max_height_tablet=”600px” max_height_phone=”” max_height_last_edited=”on|phone” custom_margin_tablet=”||-35px||false|false” custom_margin_phone=”||-45px||false|false” custom_margin_last_edited=”on|phone” border_radii=”off|200px|20px|200px|20px” box_shadow_style=”preset2″ global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n To use a credit card to help you stick to your budget, make payments to your card whenever you get paid. This works best when you already have a good idea of how much you spend each month on anticipated expenses. Then divide the monthly cost of the expenses by the number of pay cheques you get each month, and prepay that amount to your credit card each pay day. For example, if you use your credit card for $150 of eating out per month and you\u2019re paid twice a month, then make a payment of $75 from each pay cheque.<\/p>\n Making payments whenever you\u2019re paid will help make sure that you don\u2019t spend the money on something else in error. You\u2019ll follow through with your budget, build a positive credit rating<\/a>, and only have a very small bill to pay (or none at all) if you stick with your plan. This only works well, however, if you pay your card in full every month.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.16″ _module_preset=”default” background_color=”#e4f8e0″ custom_margin=”0px||0px||false|false” custom_margin_tablet=”||-90px||false|false” custom_margin_phone=”||-70px||false|false” custom_margin_last_edited=”on|phone” custom_padding=”50px||50px||true|false” custom_padding_tablet=”71px||162px||false|false” custom_padding_phone=”55px||144px||false|false” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.16″ header_2_font_size=”30px” global_colors_info=”{}”]<\/p>\n Using a credit card on an ongoing basis helps build or re-build your credit rating<\/a>. But nothing says that you have to use it a lot. When you don\u2019t want to end up in over your head, use your credit\u00a0card for only one type of purchase. Choose an expense that has an automatic limit for your spending, e.g. gas for your car or your monthly transit pass. Avoid costs that can vary a lot from one month to the next, like\u00a0cell phone bills or eating out. And if you don\u2019t trust yourself to carry your card and not use it, tip #11 might be just what you need.\u00a0<\/p>\n Request a low limit, or if your limit is currently higher than you’re comfortable with, call the\u00a0credit card company to lower the limit. They\u2019re no longer allowed to raise it without your consent, so they might try to talk you out of lowering it. Stick to your guns and lower your limit\u00a0to something reasonable.<\/p>\n You don\u2019t need high credit limits or numerous cards to build a positive credit rating, and should you become the victim of fraud, a lower limit means a thief can do less damage. You also don\u2019t need a high limit for the odd bigger purchase, such as a plane ticket or hotel stay. Most companies will let you make a payment to temporarily increase your available credit; if in doubt, give them a call and ask.<\/p>\n How Much Credit is Too Much?<\/a><\/p>\n Sometimes, getting the support of friends or family to stick to your goals is just what you need. Talk about the financial goals you\u2019ve set, what you\u2019re doing to achieve them, and ask one or two people you\u2019re close to if they\u2019d help hold you accountable. Show them your credit card bill every month and ask them to help you through the hard times if you didn\u2019t stick to your plan. While they can\u2019t give you expert financial advice, they can give you the moral support to go get it if you need it. If you invite them along, they could even join you at a credit counselling appointment<\/a>.<\/p>\n 3 Ways to Help Family or Friends in Financial Trouble<\/a><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” prev_background_color=”#e4f8e0″ _builder_version=”4.16″ background_color=”#ffffff” custom_margin=”||0px||false|false” custom_margin_tablet=”||0px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|phone” custom_padding=”2px||135px|||” custom_padding_tablet=”0px||155px||false|false” custom_padding_phone=”0px||130px||false|false” top_divider_style=”wave2″ top_divider_height_tablet=”70px” top_divider_height_phone=”40px” top_divider_height_last_edited=”on|phone” bottom_divider_style=”ramp2″ bottom_divider_color=”#e7dff3″ bottom_divider_height_tablet=”70px” bottom_divider_height_phone=”50px” bottom_divider_height_last_edited=”on|phone” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.16″ _module_preset=”default” custom_padding=”156px||8px|||” custom_padding_tablet=”” custom_padding_phone=”115px||8px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.2″ header_2_font_size=”30px” global_colors_info=”{}”]<\/p>\n Sometimes things happen and plans don\u2019t go as expected. That\u2019s okay, but it\u2019s important to take steps to get back on track. If a month comes when you can\u2019t pay off your credit card bill in full, put it away and don\u2019t use it again until it\u2019s all paid off. Locking it away in a safe place in your home or in a safety deposit box will make it harder to use. If needed, you could also cut it up and call for a replacement when you\u2019re ready. However, don\u2019t try this more than once or twice \u2013 the credit card company will wonder if you\u2019re up to no good!<\/p>\n How to Stop Relying On Credit Cards to Make Ends Meet<\/a><\/p>\n Making only minimum payments will keep you in debt for years. In fact, if you look closely at the notes at the very bottom of your credit card statement, it tells you\u00a0how long it will take you to pay off your credit card<\/a>\u00a0if you only make minimum payments. If you can\u2019t pay the full balance\u00a0every month, pay at least double the minimum required payment. Then also stop using the card and you\u2019ll see your balance disappearing rather than sticking around forever.<\/p>\n 4 Minimum Payment Myths \u2013 How to Avoid the Pitfalls<\/a><\/p>\n Most people don\u2019t really need more than one credit card. If you want to collect worthwhile reward points from a specific retailer or if you travel and need a backup card just in case, then you might want a second card. However, if you have any trouble at all with credit card debt, then more cards will multiply those problems. That would likely far outweigh any benefits you could possibly get. Make it your personal rule to only have one credit card, period. No exceptions. This also makes it easier to decline credit card offers when you\u2019re approached in stores, receive offers in the mail, or get bombarded by online ads and emails.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.16″ _module_preset=”default” background_color=”#e7dff3″ custom_margin=”0px||0px||false|false” custom_margin_tablet=”||-90px||false|false” custom_margin_phone=”||-70px||false|false” custom_margin_last_edited=”on|phone” custom_padding=”50px||50px||true|false” custom_padding_tablet=”71px||162px||false|false” custom_padding_phone=”27px||144px||false|false” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.17.4″ header_2_font_size=”30px” global_colors_info=”{}”]<\/p>\n Many people use their line of credit, which has a much lower interest rate, to make their credit card payment each month. Or they may apply for a credit card with a low promotional interest rate and do a balance transfer<\/a> to pay off their higher interest card. While this might reduce how much interest they pay initially, it opens the door to getting deeper into debt with more available credit.<\/p>\n If you do want to take advantage of a balance transfer and pay less interest, close the credit card account you transferred from and focus on paying off the account you transferred to before the promotional period ends. But be warned \u2013 the payments could be a lot more than you can afford.\u00a0 Regardless how you pay your bills, get help if you\u2019re not able to pay your account off within a few months or find that you\u2019re using it to pay for regular living expenses.<\/p>\n Credit card reward programs might seem like a sweet bonus, but keep in mind that they also entice you to spend. The trick is to take advantage of rewards and loyalty programs without letting them influence your purchasing decisions. It really comes down to never buy something just because it will give you points.<\/p>\n Be aware of the terms and conditions of your card holder agreements,\u00a0as well as how the reward programs work. It can be easy to collect points but it may have been less expensive to purchase the reward item outright, especially if you end up paying interest on your purchase.\u00a0There\u2019s also the chance you\u2019ll lose your rewards if your account ends up past due.<\/p>\n 4 Ways to Tell If Reward Credit Cards are Worth It for You<\/a><\/p>\n Using a credit card responsibly is a great way to build credit<\/a>. If you\u2019re worried that you\u2019ll overspend, don\u2019t use the card for shopping. Instead, set up one pre-authorized charge for a set amount each month, such as a gym membership, and then lock the card up. You\u2019ll still build a positive credit rating because the account is being used, and you\u2019ll know that it\u00a0fits your budget\u00a0because you\u2019ve planned for that expense. But by not carrying the card with you the temptation to overspend<\/a> will be a step removed.<\/p>\n1. Save Up for Purchases<\/h2>\n
2. Prepay Your Credit Card With Every Pay Cheque<\/h2>\n
3. Use Your Credit Card for Only One Type of Expense<\/h2>\n
4. Keep the Limit Low<\/h2>\n
5. Be Accountable<\/h2>\n
6. Put the Card Away If You Can\u2019t Pay It Off Each Month<\/h2>\n
7. If You Can\u2019t Pay in Full, Pay Double the Minimum<\/h2>\n
8.\u00a0Only Have One Credit Card<\/h2>\n
9. Don\u2019t Use Credit to Pay for Credit<\/h2>\n
10. Make Sure Your \u201cRewards\u201d Are Worth It<\/h2>\n
11. Build Credit Without Going into Debt<\/h2>\n
12. Reward Yourself<\/h2>\n