credit cards

1. Financial Literacy: Credit Cards www.lifethenfinance.com

3. Is it necessary to have a Credit Card? NO. A debit card has similar features to a credit card without the risk of incurring debt. Credit cards: - Access to a revolving line of credit - You are borrowing from the credit card company Debit cards: -Access to your checking or savings account - You are using money you have in your account.

4. Imagine This !!     Using a Credit Card  - To buy a $5.00 burger      Means you are borrowing $5.00 plus interest and possibly finance charges to buy the burger - Pay $2.00 parking meter    Means you are borrowing $2.00 plus interest and possibly finance charges to pay for parking                       

5. What's the Big Deal? You are nurturing bad habits by using a credit card for everything. i.e. You are borrowing money Best Practices: - Use a debt card, cash or check Spend within your means i.e what you have in your bank a

6. I Keep my Credit card for Emergencies     That's the purpose of the Emergency Fund. For the unexpected expenses that may arise. Emergency situations are not an Excuse to get into debt. So.... Be prepared with an emergency fund. And the emergencies will become an inconvenience rather than a crisis.

7. Managing your Credit Cards     1. Understand the terms, conditions and the cost of using the credit card 2. Plan in advance how you will use your credit card 3. Don't charge more than you can repay 4. Avoid paying the minimum payments 5. Avoid late fees 6. Payoff the revolving balance or more than the minimum payment 7. Keep track of your receipts and reconcile at the end of the month with your credit card statement