Credit Card; Make It Work FOR YOU

Yes! Make your credit card work for you! It’s just a matter of knowing how and when to use it. Apparently, many of our Filipino brothers and sisters have yet to discover this life changing secret. I still hear, see and read credit card horror stories, husbands, wives, mothers, fathers, buried in a mountain of debt all thanks to their little plastic friend.

Before we can make our credit card work for us, let us first get down to the root cause of the problem that have plagued thousands of Filipino’s throughout the decade, so we could maximize the potential power of it.

Apparently, the general problem of the masses stems from the fact that many spend more than what they, can and will, earn. Let’s not blame it on lack of discipline, it’s the overwhelming power of temptation that is, and will always be the main culprit.

The only way we could tackle and defeat this evil is if we lived by the saying, don’t bite of more than what you can chew, or in this case, don’t buy more than what you can afford.

Spending money that your haven’t earned yet, is one of the most dumbest actions you could ever do in your entire lifetime, no matter how you look at it, no matter what rationale you give it, it would still be profoundly immoral and beyond reasonable thinking.

Now, we come to the juicy part, from knowing how we can prevent credit from ruining our lives, we could confidently and systematically plan the best course of action on how to make it work for us in the most efficient and profitable way.

As we all know, credit card companies offer incentives for the continuous use of their services. Earning a sufficient number of points could give you freebies like shopping sprees and vacation escapades. Here’s one way on how you can take advantage of it, let’s say you have a credit limit of Php 500,000.00 and at the same time, a cash balance of the same figure on your savings account. Instead of using your cash to purchase groceries, clothes, appliances and travel tickets, take advantage of the situation and use your credit card to take possession of the items. By using your card, you would have accumulated valuable points that could earn you the freebies as mentioned above. If you opted to use cash instead of card, you wouldn’t have had the chance and/or opportunity to gain the incentives. The most important thing here is paying the credit as soon as possible, most preferably within 1 month at the time of purchase. It’s simply using the card as a tool to leverage asset acquisition and/or growth/preservation.