Using Your Credit Card

So tell me Jen what brings you into relationship counselling today um my credit card oh you have quite the sense of humor no I mean this was my credit cards idea, oh I just can't take it anymore I'm at my limit literally, oh my Jen the key to a successful partnership with your credit card is to pay it in full on time pay it in Full on time paid in full on time that's right your credit Cards billing cycle is the period of time between Billings It can vary depending on the card issuer so you must understand when it starts and when it ends for each credit card you use during that timeframe purchases credits and any fees or finance charges are added and subtracted from your account and when your billing cycle closes you are billed for the remaining balance this will be reflected in your credit card statement which you would know if you've ever opened one Your statement, also shows your payment due date which is usually about 20 days after your billing cycle Ends your bill must be paid before the due date in what's known as the grace period In order to avoid late fees and it must be paid in full to avoid being charged interest on the balance make sure you Allow extra time for your payment to process to in the meantime your next billing cycle will already be underway It starts with whatever balance was left unpaid at the end of the previous billing cycle and goes from there Adding and subtracting your credit card activity for the current cycle What happens to our relationship if I can't pay off my balance I will make your life absolutely Miserable what what if we? Compromise and I pay the minimum payment That's gotta count for something well making minimum payments on time may protect your credit rating and dodge the penalties related to missing a payment Altogether but you will be charged interest on the remainder of the balance and that interest Accumulates quickly if you only paid a minimum every month I can keep you in debt for a really long time you wouldn't oh yes I would start missing payments and I'll take your credit score raise your interest rates trust me sister you don't want to go Okay, let's talk about strategies for managing this conflict Jen I want you to turn to your credit card and imagine it's cash Treating your card like cash means using it to pay for things within your budget bills groceries all the regular things you know you can afford with the money you already have what's the point of having a credit card if I'm just gonna treat it like cash for the convenience and depending on the specifics of your card for the rewards what I don't want you to think I'm using you just for your Rewards why not I'm cool with it Really if you're paying in full and on time it's perfectly fine to enjoy the perks of your credit card so how do you feel I feel Recharged and I feel renewed interest what relax renewed interest in this relationship not on my credit card balance oh Well in that case I would say balance has been restored Everyone forget about me I'm a really nice gift card I've always been there for them