You probably heard about the traps of the credit card. Many people who got credit cards and abused its power sank deep in financial quagmire. On the other hand, there are some who are just barely hanging on. You may consider credit card as a reward for your years of hard work—not something that can satisfy your cravings. Now, it all boils down to one question: should you get a credit card today or not?

 

How Financially Resilient Are You?

Financial resilience is a concept that you should keep in mind. It’s not about having a large savings account or a thick wallet. Rather, financial resilience is about proper financial money management. Are you the type of person that splurges often, instead of putting small amount in monthly savings? If this is the case, then you need serious assessment. Having a credit card is a responsibility. You don’t just get that plastic card and swipe it everywhere. While it’s considered a ‘reward,’ you can also think of credit card as a controlled privilege.

 

Do You Keep Track of Your Expenses?

 Some people are always keen on tracking all the cash that comes in and gets out of their pockets. Then some people just don’t care at all. Which type of person are you? Before applying for a credit card, you should consider this. Financial monitoring is a skill that anyone should have. If you can monitor your finances, then you’re almost halfway done in the battle. You can start this habit by getting a small notebook or organizer. Every day, jot down all of your expenses. Once you see that you’re spending on unnecessary things, and then you can make adjustments.

 

Discipline is a Must

 Without discipline, the credit card will gobble you whole. Before you know it, your mindless swipes over favorite items have accrued debts in your account. This is the main reason why many credit card holders owe thousands of dollars to their banks. Before buying anything with your credit card, ask yourself if you truly need the item.

 

On a general note, it’s safer to use pocket money than credit card. Think of your card as an emergency fund that can be used for delicate situations.