The credit card has become a part of our life.
We are surrounded by plastic money.
We receive credit card offers to our mailbox every day, see advertisements on the internet or TV.
We are all commercialized.
We get used to live up to our neighbors and would not be caught dead without the screen plasma TV.
We spend outside our means, it does not matter what income we have.
This way of life has become the daily norm for us.
For young people just starting out, for those who are wise enough to not get caught in this tricky debt trap and for those individuals that have worked hard to get out of their debt there are some simple steps to help you live a debt free.
The first thing you should do is to manage your finances.
You need to set up a monthly budget plan and not to wave from it.
Determine your expenses and your income, and make sure your expenses don't exceed your income.
You can start by writing down your total income and all your expenses.
Your expenses shall include your gas, phone, cable, electric and any other bills you have.
Add into your expenses the cost of groceries, gym memberships, gas.
After adding all expenses subtract them from your income.
If you have negative results you'll have to rework your budget.
Do what you need to get into the positive.
You can also to figure in finances for emergencies.
After setting up the budget, you'll have to stick to it.
You need to use your credit cards for your expenses, but never use it for categories than are not included into your budget.
There are some things you should take into consideration when you choose what card to use.
Make sure you choose one without an annual fees.
Use those cards that have low interest rates and search for award credit card offers that could most benefit you.
For instance if you like shopping you may get a card that will offer you shopping rewards.
If you like travelling there are many travel reward cards to use.
When you use your credit card keep in mind and other important things to follow.
First of all, use the plastic as if you were spending cash.
Do not add additional items to your shopping basket.
Credit cards can give you a lot of buying power, but you should use it with caution.
This buying power caused many people to have got into credit card debt.
After getting bills each month, check them over.
Pay your bills in full so that you won't be charged interest.
And the last thing, always pay your bills on time.
If you miss your payment day that will only add on fees, interest and will cause your credit score to fall.