I have a friend who owns at least five credit cards provided with high credit limits. I remember that very first day when my friend excitedly went to the mall upon receiving the card. Swipe here, swipe there, swipe-all-you-can mode. And it happened not just once but countless times already especially with every new credit card that my friend has. Now, my friend is in big trouble and she never answers the phone for surely those are the customer representatives that keeps on reminding about the long due debt that she needs to pay. My friend is surely unaware of the steps on financial freedom. Let us understand from her experience.

Credit cards are very alluring once you have them along with the figures being allowed for your perusing. Credit cards are not actually bad because you could use them during emergency situations. It is actually how the card holders use these credit cards that determine if they are beneficial or not. There is nothing wrong with credit cards once you pay on the right time and with the right amount in order to prevent interest fees, service fees and other fees.

One of the basic steps on financial freedom is setting a credit limit for yourself based on your actual salary. The tendency when purchasing or shopping using your credit card is that there is a huge possible ness of panic buying wherein you often neglect the fact that you have already swiped so much than what you’re genuine earnings could pay for. Limiting yourself with a sure amount would be of great help. If you tend to frequently forget, make a note to serve a reminder.

Think twice or thrice before buying a thing that is not truly required. With the existing situation, you need to be economical. If you have an existing credit, settle your account first before being tempted to buy again another item. Don’t let your debt piles up; think of the interests that it will cost you. The amount that you will pay for the interest might be used for other more important things.

These steps on financial freedom would be of great use if you fully understand the usage and significance of credit cards or with any other variety of lending medium. With credit card holders, swiping too much is proven damaging especially if you have reached your limit and your earnings can’t give it. Learning from my friend’s experience is the reason why until now, I don’t have any credit card. I prefer to pay in cash.

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