5 Signs That You Suck at Using Credit Cards

Who doesn’t have a credit card nowadays? They are convenient, great for building credit, and you can only purchase some items with a credit card to help you pay for them (if you’re careful).

But, just because you have a credit card, it doesn’t mean you are using it right. In fact, you might suck at using credit cards. (It happens!) Here are several signs that you are using your credit card in all the wrong ways:

You Use It for Everything You Buy

If you swipe your credit card to buy eggs at the convenience store, then at the gas station, and then again online for a new pair of shoes, you are certainly overspending using your credit card. If you reach your credit limit, you will have to spend a fortune paying off the interest. The wise way to use a credit card is to use it only if you need it for certain expenses. You should use your income to pay for everyday needs.

You Use It to Pay for Other Credit Cards

If the primary reason you have a valid credit card now is to pay off debt incurred by previous credit cards, then you are in serious trouble. You cannot pay down credit card debt with other high-interest incurring credit cards. If you are overwhelmed with debt, cancel the credit cards and make a budget plan to reduce unnecessary spending, and use that money to get out of debt.

You Only Have One and It’s a Store Card, or You Have Too Many

If your “credit card” is a store card, it’s not going to be useful in any way to build up credit history. If you are a recent graduate or someone who needs to improve your credit score, you will need a legitimate credit card provided by a banking institution, not store cards.

On the other hand, if you have way too many credit cards that you don’t even know how many are in your wallet, you could be ruining your credit history. Too many credit cards mean you are mostly likely sinking into a deep debt. Therefore, only have one or two credit cards at maximum, and pay their monthly bills on time.

You Think You Need It

If you cannot afford everyday expenses without your credit card, you are probably crippled by debts. When you use your credit card, you are borrowing money. A financially healthy individual does not need to borrow money to buy bread and medicine. Therefore, stop depending on a credit card and sort out your personal finances immediately.

You Can Only Afford the Minimum Monthly Payment

If you have a credit card or two, but can only afford to pay back the minimum monthly requirement, then you are living beyond your means. Credit card debt does not reduce overall if you only pay the minimum requirement. Also, paying the minimum means you are acquiring debt with the interest due. Therefore, if you are currently in this situation, it’s best to start being thrifty.

It’s easy for people to get overwhelmed by credit card debt, especially if they suck at using credit cards. Credit cards are not a magic key to a lifestyle beyond your means. They are lenders, and you should use the money you borrow very wisely.

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Does Renting Out a Room for Additional Income Really Make Sense?

If you are looking for a way to bring in additional income, renting out a room in your home might be an option to consider. After all, it might seem nice to be able to bring in a monthly income for a room that you aren’t really using anyway. Other than the guidelines for resident landlord stipulated here, you must first look at your own personal situation to determine if this is the right move for you.

Do You Have Enough Space?

First of all, you’ll want to determine if you have enough space in your home to house someone else comfortably. It isn’t enough to simply have another bedroom; it’s generally best if the bedroom is well-separated from the other bedrooms and common areas in your home. For example, a room over the garage or in the basement can be ideal.

Will You Be Able to Charge Enough to Make it Worthwhile?

You’ll also have to determine how much you will be able to charge for the room if you rent it out. To do so, you’ll need to check the average rental rates for rooms in your area. If you find that rooms aren’t renting for very much in your neighbourhood, you might find that you are better off looking for another method of bringing additional income into your home.

How Do Others in Your Home Feel About the Idea?

You’ll also have to consider how your decision will affect others in the home. If you have children, you might find that you don’t feel as comfortable bringing a stranger into the house as you might if you lived alone. If you have a partner who lives with you, you will obviously want to ask for his or her input before making this type of decision. You don’t want anyone in your home to feel uncomfortable or to be put at risk due to allowing someone to rent a room, nor do you probably want to allow it to cause a rift between you and others in the household.

Can You Take Steps to Protect Yourself?

Before making this type of commitment, you’ll want to look into running a background check on the individual who will be moving in. You may also want to consult with an attorney about writing up a lease that will protect you.

As you can see, there are a few considerations that you should consider before renting out a room in your home. However, if you think it’s a good idea after giving it some thought, it’s worth giving it a try with a short-term lease so that you can change your mind if you need to. Also, make sure that you protect yourself with proper landlord insurance to help prevent liability for any accidents or other issues once someone else moves into your home.

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