What Not to Put on a Credit Card?

According to finance experts, credit cards are considered as one of the most powerful credit tools in the planet. Any person who has one can use it on almost anything he needs in his daily activities. Although considered as great financial aids, they can also wreak havoc if not used properly. Credit card holders should always have a discipline. They should be careful while using their credit cards.

People nowadays usually have one or two credit cards either for personal or business purposes. A credit card can come in handy whether it’s for your kids’ clothes, your house repairs, a nice pair of shoes, or even for an emergency purposes. You can enjoy lots of good things about a credit card that will make almost every people happy. On the other hand, it can also be your worst nightmare if used in the wrong way.

So, how can you make sure that you don’t end up financially devastated with your credit cards? Knowing what not to put on your credit card will help you to avoid financial struggles in the future. Bear in mind that such cards have a high interest rate and fees that could pile up. Here are some of the stuff that you need to keep off from your credit card.

  • A Grand Wedding – every individual would love to give their partner a grand wedding. Of course, why not? A wedding is one of the most memorable and exciting life events to a couple. So, spending a big amount of money would be worth it, right? Actually, that depends on where you get the money. If you had the cash from your monthly salary or your earnings, then it’s not a big deal. However, if you got it from loans or from your credit card, it’s something that you need to worry about as soon as possible. Why? Basically, credit cards command a high interest rate that will definitely cause financial problems for the couple. Financial experts wouldn’t recommend that you get your wedding resources from a credit card. In fact, they would highly suggest that you source it from other alternatives. If you’re having a hard time with your finances, then why don’t you work within a budget. After all, it’s not how grand the wedding is that matters. It’s actually the fact that two people get united as one, which is more important.
  • Medical Bills – although medical bills are considered as one of the most important bills to give priority in a person’s life, the payment should not come from a credit card. Always bear in mind that medicines are among the stuff that usually has an irregular pricing. More often than not, their amount increase every now and then. And if you’re taking medicines, then most likely you’ve experienced the never ending increase in prices of medicines in the market. Add the high interest rates of credit cards to that and you’ll have the ingredients of a financial disaster. How can you pay something that often goes up in terms of amount? It’s quite difficult for people to pay their medical bills if they purchase them with the use of their credit card(s).
  • Education – we all know that education is important. Anyone would gladly use a credit card just to send their child to a good school, isn’t it? However, isn’t it smart if we find other sources of funds to get our kids to school? Credit cards aren’t actually the best option when it comes to financing your child’s education. You can find lots of good alternatives where you can get the money that you need to send your children to school. Among these is by asking a friend or relative to help you out with the tuition fee. Instead of paying a high interest, you can pay the lowest rate if you got the money from an acquaintance. In fact, some friends or relatives wouldn’t even bother getting extra cash in return for the money they lend to you. If you can’t get the money from them, then you can get it from another source. Student loans can also be acquired if you can’t find better options. A student loan is much better as compared to using a credit card. Although there are lots of perks if you know how to use a credit card, it’s always better if you play safe even if you expect money to pay the coming bills. After all, you won’t use your credit card if you have the cash.
  • Vacations – while it’s safe to go around without bringing cash with you, a credit card should never be your financial option in the first place when you are on travel. Basically, credit cards have huge credit limits which allow you to spend up to the limit. Most people forget about self-restraint and tend to spend up a huge amount of money during their vacation. According to some experts, you should not use your credit card for vacation purposes as much as possible. However, you can use it in case of emergency or if you know how to control this credit tool to your advantage.
  • Building New House – most people would go to get a loan for sure. However, some individuals do not know this one. When it comes to building new home or renovating an existing one, using your credit card to finance it wouldn’t be a good idea. A house is a huge investment that will take up a big amount of cash. So, getting money from your credit card or swiping it to get the items you need for the house is a bad thing to do. You can actually get financial help through loans or by borrowing money from your friends, relatives, or family members while negotiating a mortgage to finance it.

Limiting your use of credit cards is one thing. Focusing on one credit card is also another thing that will help you to avoid financial problems as you go on. Aside from limiting your expenses, you’ll also be able to pay off your dues with less difficulty because of the smaller amount you’ve used from the card. Instead of relying solely on credit cards, why don’t you look for alternatives that won’t pull you to the credit card debt trap? In case you don’t know, the trap includes a never-ending payment cycle that is often hard to get out from. After all, these cards aren’t your only option when it comes to finances as you can borrow money from other sources.

Credit cards are helpful credit tools as long as you know how to use them. In fact, lots of card holders are happy and satisfied with their cards when their finances are in good shape. But things are different when they start bringing in problems when cash is short and you need to pay them. However, you can’t blame the credit cards as you are the one who’s been using them for your benefit. Most of the time, overuse of the cards has been the main reason why many card holders are struggling financially. If you are a card holder, make sure to use it wisely.