Used wisely, credit cards can be a very helpful financial tool to have at your disposal. A credit card allows you to purchase items you need right now, reduce the need to carry cash, create a record of your purchases, and can provide protection and extended warranties on your purchases.

However, credit cards can be easily abused and have negative consequences. Accumulated interest, finance changes, and fees can dramatically increase the overall debt on your credit card.

Some tips for managing your credit card are:

• Avoid impulse spending. If you do not absolutely need it, do not buy it.
• Pay off the balance on your credit card each month.
• Avoid credit cards with annual fees.
• Do not use your credit card to as a means to improve your lifestyle.

Responsible use of credit cards can be a viable tool for building a strong personal financial status. Reckless and unhindered use of credit cards can lead to excessive debt and an unfavorable credit history.