Management of personal finances can be a headache!

Managing one’s finances is not only about avoiding debt, although that is a great part of it.  But, the goal is to effectively manage one’s income no matter how big or small it may be.

We want to help you attain sound financial management.  To do this, we’ve created a new series titled Personal Finance Made Simple.  In each instalment we share tips on combatting issues that negatively impact personal financial planning and activities.

In this issue, we will examine credit cards.  Don’t groan.  We won’t discuss the pros and cons of having one.  Instead, here are some dos and don’ts for acquiring and using your card.

First and foremost, don’t get a credit card that you can’t afford.  Get a card based on your income no matter the limit being offered.

Do use your credit card only when you can pay it back.  Basically, only use your credit card when you have available funds to repay in full.

Don’t miss payment due dates.  Be sure to pay attention to your payment cycle and due dates.

Do maintain your credit card limit.  Try not to go over it.

Don’t pay the minimum monthly payments.   Increasing your payment allow you to faster reduce your current balance. Always aim to pay more than the minimum.

Do get a credit card that gives you some sort of incentive.   Cash back, points or rewards are perfect.

Don’t forget even when you are not using your card, interest is being charged.

Do get all the information on your credit card interest before acquiring it.

Successful management of your finances is possible. It requires commitment and education, and we are here to keep you supplied with the information to help you make informed decisions.

To get more information be sure to check with your financial institution.

Stay tuned for our next issue of Personal Finance Made Simple .