Credits cards get a bad rap in the personal finance community, and understandably so: they are a big source of temptation for people to overspend. After all, it’s so much easier to swipe a card at the register than fork over cash. They’re also really convenient for those moments when you’re in a pinch and don’t have enough funds for something right then and there. And if you happen to a compulsive shopper or have an addictive personality, they can make the problem worse. Remember Rebecca Bloomwood from Confessions of a Shopaholic who couldn’t part with her credit cards, even when she was in major debt?
When used improperly, credits can wreak havoc on your financial life, a reality many Americans know all too well, seeing as credit card debt has hit an all-time high in the nation. According to 2017 report by Experian, the average American carries a credit card balance of $6,375, a 2.7% increase from the previous year. (Notably, but not all that surprisingly, millennials have more credit card debt than any other age group, up 10.8% from 2016.)
While the figures are startling, it’s still possible to keep your credit card without running your bank account dry and compromising your financial future. All it takes is smart planning and self-control. Easier said than done, but it’s possible. In this week’s installment of the 3-Minute Guide, brought to you by Skillshare, Erin shares some helpful tips to manage credit cards. Check out the video on TFD’s Youtube channel find out how to get really good at credit cards.
Image via Unsplash