The One Thing You Need To Know Before Paying

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What is the one thing that you need to know before paying?

Simple, whether to pay cash or credit? Now given the fact that most of us use our credit cards as our emergency savings funds, which is totally wrong by the way. We often find ourselves not knowing when to use our credit cards, when to leave it home or when to just rip the thing to shreds. Maybe I can help:

1. Can you pay the amount fully before interest is accrued or the due date? If you can, you pay credit and pay it off as soon as it’s posted. This will build your credit and increase your score. Small strides, but still… Better small than none at all.

2. Have you already used up more than 70% of your credit limit? Then you pay cash?

3. Are you going to get cash back rewards or discounts, specials maybe? Then you pay credit…but remember, only if you can pay it off in full.

4. Movie night? Anything that is leisure, shopping sprees included. Cash.

5. Monthly or recurring expenses. Credit. These would be your phone bill, internet etc. This shows that you are responsible with making monthly payments.
Disclaimer: If you know good and well that you are forgetful or irresponsible, please only charge one monthly to your card. This will avoid spending the monies in your account that is allocated to bills.

For more tips, visit https://finucoaching.com. To connect with Chai, visit https://chaishaddai.com.