What are The Do's and Dont's of Using a Credit Card?

Surely, credit cards have their benefits but you need to know how to use them if you don't want to get into a lot of debt.  Be wise to heed this advice: "Credit cards are not a substitute for not having money." Before you think of swiping that credit card, bear in mind these three do's and don'ts.

Do's

1. Always plan your purchases.  List down your needs and wants.  You need the essentials, and you want everything else. Make a distinction between the two to help you plan wisely.
2. If caught up in financial difficulties, talk to the issuer who might re-schedule your payments. Defaulting will build up an unfavorable credit history and probable denial next time you apply for credit.
3. Unless it is an emergency, stay within your credit limits. If you must spend over the limit, make sure you are within the manageable levels, say within 30 percent.

Don'ts

1. Do not make household purchases using your credit card. You end up paying more because of the added credit card interest.
2. Do not just pay the minimum amount. You will also end up paying enormous interest. The quicker you clear the debt, the better.
3. Do not use the credit card to purchase things you can't afford.