How to Use a Credit Card Responsibly | Brooklynn Chandler Willy

Page 1

a How to Use a Credit Card Responsibly by Brooklynn Chandler Willy | Dec 2, 2022 | Brooklynn Chandler Willy, Finance

A credit card can help you build a solid 몭nancial future and establish a good credit score, but it can also lead to a large pile of debt you need to pay o몭. Before you use a credit card, it’s essential to understand the various steps that will help you avoid problems later.

Budget Although a credit card can help make purchases and earn rewards, it shouldn’t be used to buy things you can’t a몭ord. Having a realistic budget will help keep you from getting carried away. A budget that follows the 50/30/20 method will allow you to allocate half of your take-home pay to pay for necessities, such as groceries and housing, while the other half will go toward paying o몭 debts and savings. This will help keep your credit card expenses aligned with your income and savings goals.

Monitor Spending The 몭rst step is to determine how much you can a몭ord to spend. After that, keep track of your monthly purchases using a credit card’s website or app. Once you reach your limit, stop using the card until you have paid o몭 the balance. This discipline


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
How to Use a Credit Card Responsibly | Brooklynn Chandler Willy by Brooklynn Chandler Willy - Issuu