Credit cards are a financial tool. If used wisely, they help manage finances, build credit profiles, and meet financial goals. If misused, they have the potential to create an overwhelmingly stressful financial life.

No matter how you may feel, credit cards are a necessary part of one’s life in the 21st century. It is unrealistic (and arguably unwise) to think one can avoid using credit in a credit-based economy. Therefore, it is essential to know how to use credit prudently.

Stay Mindful Of The Fact That Temptations Are Everywhere.

Marketing is designed to entice consumers to open their wallets, even for things they cannot afford and purchases they do not need.

You Are Not Alone.

According to a recently released Harris Poll, nearly 50% of those polled carry credit card debt. About 40% carry debt from month to month. Approximately 25% of the respondents who carried debt had more than $100,000 in debt.

Debt also tends to amplify inflation’s impact. Other relevant stats from Harris Poll’s 2021 Financial Literacy and Preparedness Survey include the following–

• 26% of the responding general population is more worried this year about meeting basic expenses related to the household than 12 months ago.
  
  
• 24% of the responding general population is more worried about making timely debt payments this year.

Spend Within Your Means

With temptation everywhere, this may be easier said than done – but not impossible! It can be tempting (and convenient) to use a credit card to meet this cash flow issue when facing a monthly shortfall. Focus on spending less than your income, so it is more unlikely there will be a shortfall to manage.