I got my very first credit card when I was working with call center. My first credit limit was PHP25,000 and that time it was big amount. Let’s face it being ‘kuripot’ (thrifty) I tried before not to buy things unless it is totally worn out, and this was before when I don’t have credit card.
Lo and Behold, the Kuripot me started swiping my credit card like crazy. But of course that time, I have a big salary and I got this every other week. So the interests and other percentage to be added to my credit card didn’t scare me.
I pay on time and I got good credit line that time. It didn’t occur to me that this plastic card will be a major problem in the future. Let’s face it, credit card companies loves to offer this plastic in call centers because they know “we can pay”.
So what we did, dine here, party there, shopping more, expensive getaways and the likes. And I pay my credit card every month as if my whole paycheck is just destined to pay for my bills. But despite this, I remain the “swipe queen”.
And then when I quit from my call center stint, that’s the time I realized how hard it is to keep a credit card. I have this tendency to swipe it anytime thinking that “Hey I will be able to pay this soon and besides this is “ZEEERRRROOOO” interest purchasing”. Dang, I was so stupid that I didn’t realize that I will be paying more because of that installment basis with “ZEEERRRROOOO” interest. I know, stupid me… 
Didn’t know that the interest rate is just way way to much.
But now I learned my lesson and decided not to have credit card at all. Yes, I don’t have credit cards anymore.
Here are some tips for you guys to know if you’re heading into Credit Card debt:
1. You use credit to meet basic needs. Your income should be used to buy everyday items like food, clothing, and gas. Having to use credit cards to cover these types of purchases is a sign of financial trouble.
2. You transfer balances to avoid credit card payments. There are times when a credit card balance transfer makes sense, like to consolidate credit card balances or to get a lower interest rate. However, frequently transferring balances instead of making credit card payments is a red flag.
3. You skip one credit card bill to pay another. Prioritizing credit card payments is wise. But skipping payments is always unwise. If you consistently find yourself too strapped for cash to make your credit card payments, you are already in credit card trouble.
4. You avoid or ignore credit card statements. If only wishing away credit cards actually made them go away. Pretending your credit card debt doesn’t exist only gives it time to grow. Facing credit card debt sooner gives you the opportunity to tackle debt before it gets out of control.
5. You charge more than you pay. Imagine trying to fill a hole while someone shoveled out more dirt than you put in. Your hole would never get filled would it? It’s the same with debt. If you’re charging more than you’re paying, your credit card debt will always continue to increase.
6. You don’t have an emergency fund. If you don’t have an emergency fund, you’ll feel forced to use your credit card in emergency situations. Credit card debt created because of large, unexpected expenses can be hard to pay off, especially if your budget is already stretched.
7. You don’t have a plan to pay off your credit card debt. You know what they say, “Failing to plan is planning to fail.” If you’re not actively working to pay off your credit card balances, you could end up unnecessarily paying on the cards for years to come. Whether you have excessive credit card debt or not, you should always have a plan to pay off your balances.
8. You use credit to “afford” expensive items. The allure of credit is that it tricks us into thinking we can afford to buy more than we really can. Truth is, only extra income or lower expenses (or both) enables you to afford more expensive items. Incurring credit card debt to maintain a lifestyle you really can’t afford isn’t a wise decision for your future income.
9. You have past due accounts. If you have credit cards that are currently past due, you’ve probably run into unfortunate financial trouble that’s keeping your from making payments. Remember, the more past due your accounts become, the harder it will be to bring them current again. Take a look at your monthly budget for money you could spend to get your credit accounts back on track.
10. You have maxed out credit cards. If your credit cards are all maxed out, you’re not headed for credit card debt, you’re already in it. What next? Make a decision to pay off your credit card debt and to make wiser choices about using your credit cards in the future.
Then I was able to watch this television show about a young lady played by Nikki Gil who is a shopaholic. She swipes her card and buy things that she don’t really need. And the magical credit card that she got is no interest at all. So when she started swiping since she got an unlimited credit limit, she started to change, neglect people around her and her relationships with her boyfriend and bestfriend started to be on the rock. Then when she totally lost them, the credit card bill… It says there that she is paid already. With clothes - she paid it with love, with shoes - she paid it with friendship… so on and so forth. Until she lost her sanity too which is paid to other things she bought.
That made me think, being addicted to shopping and swiping can cause really harm to everyone around you. And because of this, let me try to share tips on how to ‘PROPERLY’ use your plastic cards there. 
Consider where you shop. Opt for cards that will earn rewards at stores and services you use most often, or offer savings on items that you actually buy regularly. Airline and hotel discounts, for example, are not particularly useful for those who aren’t frequent travelers.
Project your spending. Figure out how much you’re likely to spend, and translate that into cash back or points, depending on which program your card uses. For points, figure out how many you need to get the rewards you want. Make sure to subtract the annual fee, if your card has one. If you realize that you’d have to spend a small fortune to earn only a tiny reward, try another card.
Favor cash back. Points often end up unused - a plus for the credit card companies who got you to spend more without having to give you anything in return. But cash back accumulates without you actually having to do anything. Plus, Consumer Reports found that cash back cards tend to offer better rewards than point equivalents.
Skip credit if you carry a balance. If you don’t pay your bills of in full, you may want to pass on the rewards cards altogether. Because rewards cards often have higher interest rates, you may end up paying much more in interest than you reap in rewards.
Do the math on do-good programs. Do-gooders might be enticed by cards that give rewards to charity. But they usually pay very low rates - about 25 to 50 cents for every $100 you charge. You’re probably better off going with the cash back, and then sending money to a charity yourself. You’ll end up with a larger donation - and a tax deduction.
Use airline miles fast. If you do still use airline miles and manage to save up enough for a trip, make sure to use them right away. Airlines are always changing their redemption rules, and considering how much the big carriers are struggling these days, holding onto unused miles can cost you.
Avoid temptation. Research has shown that credit card customers are tempted to charge more in order to earn points toward a reward such as new digital camera or set of golf clubs. But overspending for a “freebie” often doesn’t pay.
~By: CNN Money.com
And this tip as well
- Use a credit card for large purchases because they offer the best purchase protection. Pay off our balance each month.
- Use a debit card if you don’t mind having the money come out of your bank account immediately, and as a way to be sure to avoid interest and fees. A debit card offers some protection, but not as much as a credit card.
- Use a check if plastic isn’t an option.
- Use cash at any time. There’s no risk of identity theft and it’s accepted everywhere, but you have little protection in case something goes wrong with the transaction.
- Don’t use your credit card or better not to have any credit card at all.
DON’Ts
* Use your credit card to make everyday purchases. Items like food, clothing, and gas shouldn’t be purchased with a credit card. Using your credit card as a substitute for cash is a habit that can quickly lead to debt. For ordinary purchases, leave your credit card in your wallet and use cash or debit card instead.
* Get into the habit of making minimum-only payments. Making only the minimum payment each month increases the amount of time it will take to pay off your debt. It also increases the amount of interest you end up paying. To pay your debts off quicker and cheaper, you should pay as much as you can on your balance each month.
* Use your credit card to buy things you can’t afford. Living a borrowed lifestyle is the quickest way to get into debt. If you can’t afford a purchase today, chances are you won’t be able to afford it tomorrow, or even next month.
* Close out a credit card without knowing how your credit will be impacted. There are times when closing a credit card can hurt your credit score. Avoid closing cards that still have a balance or those that make up a significant amount of your credit history.
DOs
* Make wise decisions about purchasing items you need versus those you simply want. We’ve all used the word “need” to describe something we really just wanted badly. Using your credit card responsibly means recognizing which things you need and which you just want.
* Let your creditor know in advance if you won’t be able to make your monthly payment on time. The worst thing you can do is simply forgo your credit card payment, no matter the reason. Most creditors will assist you if you let them know before you miss your payment. Simply call your creditor, briefly explain the situation, and ask that any late fees be waived.
* Stay within 30% of your credit limit. A large part of your credit score considers the amount of debt you have. Keeping your balances low helps you maintain a good credit score. Not only that, lower balances are easier to manage than those that are higher.
* Negotiate a lower interest rate. Especially if your current rate is higher than offers you receive. Your interest rate determines how much you pay for carrying a balance on your credit card. Evaluate the interest rate on your credit card periodically to be sure you are getting the best deal possible.
Hope this helps..
