Credit cards have become an indispensable part of our modern lives. And it seems, as the economy worsens, we are becoming more dependent on them. I must admit, they come very handy in times of needs; on the other hand, they can also be the roots of your financial problems when not properly managed. It is so tempting to purchase your ‘wants,’ rather than your ‘needs’, when you have a high credit balance. However, in the end you see yourself calling on the customer service representative of your credit card bank, pleading to have your bill payments deferred for another month, and withstand the worst of high interest as a result.

How do you avoid that sad predicament? Here are two practical tips about credit cards and their use:

• First, select the right credit card for your needs (not wants) and compare interest rates. There are many types of credit cards available today. So, pick one that best suit your needs (See the word in bold? I am being emphatic on that.)
• Second, prioritize your purchases. I mentioned already about ‘wants’ and ‘needs.’ Spend money first and always on the priority needs, then on the wants when there is more to spare.

You might have practical tips to add, please hit the comment link, and share yours.