Few days ago, I got a chance to talk to my mother who, then reports the credit situation of my brother. The truth is three of his credit cards have ballooned to an amount he can no longer pay. As an older sister its part of my responsibility to call his attention as I don’t want him to suffer from drowning to debts. His situation is just a good example of card misuse. Many other people also experience this kind of situation.

Here are the steps my brother and credit card owners can take, to use credit card wisely and responsibly.

• Charge only what you can afford to pay. Total payments for debts, loans and credit card bills should not be more than 15 to 20 percent of the take home pay, excluding rent or mortgage payments. Set a monthly limit of charges and don’t go beyond this amount.
• Pay your credit card bill on time, and as much as possible in full. Arrange to have your credit card bill pay online through your bank so you can save on tome. If possible, pay the full amount due on your bill to avoid finance charges. If you can’t at least pay the minimum amount due every month.
• When you receive your bill, compare this against your copies of sales slips for your purchases. If there is discrepancy, call the credit card issuer immediately.
• And the most important of all is keeping credit card safe. You must treat it like cash and make sure it doesn’t fall into the wrong hands. Automatically report lost or stolen credit cards.
• And if you find yourself in the midst of trouble, call your credit issuer and own up the situation. They’ll be happy to work with you as they want to get paid.

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