There are times when using a credit card makes sense, such as if you're making a big purchase for your home (like a set of appliances). There are also times when using your credit card can cause more harm than good. It's up to you to understand the difference.
Here are five things you should avoid putting on your credit card in the future:
- Mortgage payments: Even if your lender allows this, it's a mistake because you're not really making a payment but instead moving your debt around.
- Household bills: From your gas to your cable, from your electric to your water, don't get into the habit of paying household bills with your credit card.
- Daily purchases: This includes things such as trips to the grocery store, cups of coffee and vending machine treats.
- College tuition: You're better off securing a student loan, as these typically have a lower rate than a credit card.
- Medical bills: If you have a medical debt you can't afford, discuss your options with your provider. You may be able to negotiate a lower price. You may also qualify for a payment plan. Both things are better than using your credit card.
It's tempting to use your credit card any time you need to make a purchase, as it's often more convenient than cash. Not to mention the fact that a credit card allows you to make purchases you can't really afford.
If you've done this a few times too many, you may be facing a mound of credit card debt that's difficult to overcome. In this case, focus on your options for reducing or eliminating your debt, such as consolidation, settlement and even bankruptcy.