by Jasoni Turner

Created on: October 30, 2009   Last Updated: November 02, 2009

In 2008 about 78% of households in America had one or more credit cards. Credit Cards can be useful to help pay unexpected expenses or to buy something that you would prefer to make payments on, but most people do not use credit sensibly and because of that the average credit card debt among Americans is $9,000. This article will explain how to use credit sensibly and help you from becoming overwhelmed with credit card debt.

Before you decide to get a credit card, first decide if it is really worth it. Ask yourself "I am responsible enough to pay every payment on time?" and "Do I really need a credit card to help pay expenses or am I fine now?". Asking these questions will be the first step to decide if you will be able to manage the card without things getting out of control and landing you in debt. If you do decide you want or need a credit card, decide which one will be best for you because different cards have different APR's and Fees, so try to find one that has low interest rates, fee, and a reasonable grace period. Don't just sign-up for one with ridiculous rates just because you got it in the mail.

When using you credit card make sure you evaluate whether it's a purchase that you really need, that you can repay, that you need right now, and how much it will cost you in the end. After you think about these things you can realistically decide if using credit is the best way to purchase the item.

When you get your bill pay it immediately or even try to pay off your purchases during your grace period so you will not have to accrue interest or any fees.

DO NOT go over your credit limit as this will cost you huge fees and penalty charges. Keep something like a notebook or checkbook to keep up with your credit card balance and record all purchases you make with your card immediately after you make them.

Try to have only 1 or 2 cards at a time any more than this and you may find yourself spending money you simply don't have and paying more and more bills, which may cause enormous debt. Also the more your credit report is looked up the worse it gets so don't sign-up for 10 different cards because you like the promotional items you get for signing up.

Also make sure you keep a copy of all your credit card numbers, expiration dates, and security code in a safe place just in case your card is lost or stolen you will be able to cancel it.

Finally create a plan to repay all debt as quickly as possible and actively try to pay off all debt just as soon as you can, because lingering debt is like a monkey on your back that you don't want to deal with.

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