WHAT SHOULD NOT BE DONE

• Don’t make use of credit cards for everyday or regular purchases. Clothes, food or gas should be bought with cash and not by using your card. Your card should not serve as a proxy for cash, if this is done, you would soon be digging into debt. The best option is to shell out cash or use your debit card to buy items and things of daily use.
• Don’t make it a practice to make the minimum-payment only each month as this extends not only  the time period you would take to settle your debt but would also increase the total interest amount you would have to pay in the end. Therefore, for a cheaper and quicker settlement of debt-dues, you should try to pay off as much as possible each month.
• Don’t use your card to make expensive and beyond-your reach purchases. Your “Buy-now-pay- later” approach might soon land you in debt. For anything that you do not have enough funds to buy now might still be unaffordable for you even later, hence refrain from buying that on credit.
• Don’t close a card account unless you are aware how it could impact your credit. Avoid closing card accounts with outstanding balances or those that are a significant portion of your history of credit as doing so might damage the credit score.

 WHAT SHOULD BE DONE

• Satiate your needs but you need not fulfill all your whims and fancies. Use the card to buy essentials but don’t indulge in luxuries. Just because you possess a credit card or two does not necessarily mean that you should pick up anything you fancy, use it only if you need to. Be a sensible spender, not a careless spendthrift.
• Better late than never. Inform your creditor beforehand if you would be unable to pay your monthly amount on time. Do not make the mistake of keeping your creditor uninformed and then forgoing the monthly payment. Call the creditor, explain your condition, check for late fee waiver and most often than not, creditors will be willing to help you if they get to know about your dilemma.
• The total debt amount you owe is a major part of consideration of your own credit score; hence limit yourself to within 30 percent of your prescribed credit limit. The lower your balances, the better your credit score would look. To add to that, lower balances can be easier to manage.
• Bargain for a lower rate of interest if the current interest rate you are being charged is higher. The rate of interest determines the sum you would have to pay for a carry-forward balance on your card. Periodically, review the rate of interest being charged by your card company to ensure you have the best deal offered to you.