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Having a credit card is convenient. You can borrow money without taking out cash and pay for what you purchase at the end of the month. While it offers the convenience of being able to buy something and pay for it later, it can also put you in a risky situation and you might end up in credit debt if you don’t pay for it when the month ends.

Before you find yourself sinking in the quicksand, learn to manage your credit effectively by following GoBear’s tips below. 

Only use your credit card if you can pay for it 

Some people tend to go all out when they have a credit card which puts them in the credit card debt quicksand. Don’t go over what you can afford. If you can’t pay it off in the next 30 days, then don’t buy it. If it’s by installment, make sure to pay for it monthly.

Make sure to pay off in full each month

When you’re paying off your balance, make sure to completely clear it off. If you don’t, you will be charged interest on everything on your card (unless it’s during a 0% introductory period) – not just the bit you have not paid yet. The interest charge varies per credit card company, make sure to check the terms and conditions carefully.

Debts can get out of control; the reason is you pay interest when you don’t clear your card each month. This causes your debt to mount up and take a long time to pay off.  

Avoid the late payment trap

If you don’t handle your payments well, you end up making late payments. This is something you should avoid especially on your credit because there could be some serious consequences.

You might find yourself facing and being charged with late payment fees, including the interest on the whole amount you owe. If you continuously neglect to make payment regularly, your interest rate will go higher, reduce your credit limit or worse, cancel your credit card. This can also affect your credit score and rating. Paying late can damage your credit rating which makes it harder for you to get a new credit card if you’re thinking of applying for one. 

Stay away from the minimum payment trap

You might think that paying your bills off in small amount is good, but just paying for a small amount can cost you a lot in the long run. You end up making repayment for years not realizing that you’re paying more in interest than the original debt.

The best thing you can do is avoid overspending on one card since you’ll only end up paying more. 

Don’t go over your credit limit

When you go shopping with your credit card, never go over your credit limit. You will only be charged a fee. You may want to contact your credit card company if they can increase your credit limit. Just make sure you can pay for it. 

Don’t make cash withdrawals from credit cards

It’s not like a debit card where you can withdraw cash for free. You will still have to pay fee and interest rate that is higher than the normal.

Avoid recurring payments on credit card


A recurring payment also known as ‘continuous payment authority’ or CPA, allows a company to put a charge on your credit card bill automatically. This happens when you apply for a membership where you have to make monthly payments such as Spotify.

You may cancel recurring payments from your credit card provider or the website of the company you are a member of.

Taking control of your debt is difficult, but by following these tips, you can learn to manage your finances easily. It just takes a fair amount of discipline.

Find the best credit cards that suit your shopping needs. Compare with GoBear today!