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“Had to use my credit card. I’m broke and I don’t have cash to spend”.

This all-too familiar statement is not rare. Rather, it is common. Many people, despite already being saddled with debts, still use their credit card to buy something. Oftentimes, they use credit cards even when they don’t really have to.

Tell me someone who has not been lured by this “credit card cycle”.  Initially, when you are a new credit card owner. You just use the card for convenience until it becomes a habit. Well, a bad habit at that. You buy something that you will pay tomorrow. Tersely said, using credit is spending tomorrow’s income today.

In short, credit card is a trap as has often been the case, sorry to say, if you don’t know how to manage it.  

But credit card is not a totally bad thing. It depends on how you use it.

If you are an employee, since you are a regular earner, you can plan your use of credit card. Ideally, use your credit card only if you know you can pay for the item you bought in full. It’s just like paying in cash when you bought it. The difference is that you bought it “cash-less”. And the good side of it, some credit card companies rack up reward points for you where you can redeem items for free when you have reached the targeted reward points.

If you are self-employed, the same principle applies. Use it only if you know you can pay it in full when the credit card amount falls due. In other words, spend within your means.

I must admit that I’m not perfect in handling credit cards. I, too, have become a “victim”. Right now, I have already cleaned up one credit card. This means that I have fully paid all of my debt and there’s no more outstanding balance. Now, there are two more credit cards to go. Realistically, I can clean up one more credit card by year end and the 3rd card by next year. Since I live on commission basis, there are times that I had to use my credit card to buy necessities.

I have graduated from buying wants. I only use my credit card to buy food, spend for gas and medicines. But I know my limits. Been there, done that.

I had to go through this experience to realize the proper way of using credit card.  From this experience, I now see light at the end of the tunnel.

In a matter of months, I’ll be debt-free but I’ll still keep at least 2 of my credit cards for emergency and convenience.

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