Topics: Debt, Credit card, Credit Pages: 2 (508 words) Published: June 16, 2015
BSBA III- Financial ManagementCredit and Collection
It’s convenient to use in a wide variety of place in stores, on the phone or online. You can manage your budget using your monthly statement with the details of all purchases. It is safer than carrying a lot of cash.

You can earn prizes like rebates or points.
If you make late payments, do not pay the balance in full, or exceed your credit limit, you will have to pay extra in fees and interest. Credit cards can lead to debt and negatively affect your credit history if it is not managed properly. If you do not track your purchases, it can be difficult to know how much you spend in one month until your statement arrives. SOURCE: 2. WAYS TO AVOID CREDIT.

CREATE A BUDGET – Creating a realistic budget will help you identify exactly what you are spending your money on, whether they are “needs” or “wants.” The budget will show you if you are spending more than you earn or if you are earning more than you spend. (Any extra money you can spend on your “wants”, repay any debt, or save for future purchases or a “rainy day”.) LOOKS FOR WAYS TO SAVE MONEY – Buy at discount or warehouse stores, use coupons, look for the cheapest gas, go to discount movie theaters, and take advantage of student discounts. This will mean extra money for the things you “want” or help to add to your savings account. OPEN a SAVING ACCOUNT- You will need savings not only for unexpected expenses such as emergencies, but also for the expenses you know you are going to have (car repairs or an upcoming vacation). You’ll go broke relying on high-interest credit card loans to pay for these. PAY YOUR BILLS ON TIME – One of the best ways to hurt your credit rating is to pay any of your bills late. This includes not only your credit card bill, but also other bills, such as your cell...
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