Using Credit Cards to Control Your Financial Situation

Many people believe credit cards are the root of all evil. Used irresponsibly, sure they can be a problem. But, if you know how to use them right, credit cards can be a major boon to your financial situation.

Before you can see how credit cards can help you, you need to know your real financial situation. There is only one way to do this. Make a list of your expenses, know what you are spending and then sort out how your credit cards can help out.

Figuring Your Expenses - This will take a little paper gathering but is not hard to do. You need to find the credit card statements for an average month. Additionally, gather any other bills that you pay in a regular month. This includes everything down to the times you go out for dinner or the movies. When you add all these items up, you will know how much you are spending in an average month.

How Much Do You Make? - It is important to know how much you are really making as you consider how you are going to pay off how much you have been spending. This includes your paycheck from work, after all taxes and deductions have been removed, and any other supplemental income that you are using on a regular basis.

Do the Math - When you compare these two numbers, how do they look? Do you make more or spend more in a month? If you are making more than you are spending, good. If not, you need to change your spending habits to be lower than what you are bringing in each month.

Using Credit Cards to Your Advantage

Now is where the credit cards can come in. Not only can credit cards be a way for you to consolidate your expenses, but also a way to cut down on some of your spending, or at least get some of that money back. There are plenty of rewards credit cards that can help you to this end.

Cash Back Credit Cards - The easiest way to get money back as you spend is with cash back credit cards. These are exactly what they sound like, cards that give you a percentage back (usually 1-5%) on money you spend on the card.

Gift Certificate Credit Cards - A way to get a little more back for your money is to find gift certificate rewards credit cards. These are ones where you get points for each purchase that you can redeem for them to various stores and businesses. Often you can get more back for each dollar spent taking this route than by cash back cards.

Discount Rewards Credit Cards - Many companies have come to agreements with many businesses to offer their cardholders discounts and special deals. You should check with your credit card company to see if they have any of these types of partnerships you can take advantage of.

Travel Rewards Credit cards - If you regularly travel, you should look into travel rewards credit cards. Many of these cards will offer money towards or discounts on car rentals, hotel stays and even airfare, all the things you need to travel.


About the Author
Steve Sikes is an MBA and writes articles on credit cards and other financial products. To read other articles and compare and apply online for top credit card offers for low interest, balance transfers, rewards, cash back, business, airline miles, you will want to visit http://www.CreditCardWave.com