So You Have Your First Credit Card?

The first credit card is a big thrill. Being able to hold that piece of plastic in your hands is very empowering. Unfortunately, many people take that power too far. When you're not handing over actual cash, you might not realize how much you're spending. By the time you do, you'll be in a trap of debt it will take you many years to find your way out of.

Fortunately, there are ways to avoid this, and most of them simply have to do with being smart with the use of your credit card. In receiving it, you've also been given a chance to start your credit history out on the right foot - and to keep it that way. The most basic thing you can do to achieve this goal is to make your payments on time and in full every month.

Many people think having more credit cards will get them more freedom, but find it only leads to more trouble. If you don't have a feeling of cash leaving your pocket with one card, you certainly won't with two or three. Instead, stick to the single option for now and be sure to keep track of everything you spend while using automatic payments.

The same misconception is made about a high credit limit. You think you'll be able to buy anything, and that's just the problem because you can afford to buy anything. Keep the limit at a point that it will allow for everything you might want to spend, but will also force you to limit use to emergencies only except in very special circumstances.

Of course, as responsible as you might be with yourself, you can't be responsible for others. As such, never hand over your card to anyone, no matter how much you trust them. If that piece of plastic isn't in your hands, anything could happen to it. You have to keep it safe from anyone, and anything that might happen to it.

It's not just other people you have to be worried about; it's the companies themselves as well. There will often be offers that will sound appealing, but only lead to more trouble later on. One of the best examples is a cash advance. It's great in the short term, but before long you'll have tons of interest to worry about that won't leave you alone.

All of this might sound a bit overwhelming, but you really must become familiar with it. Do more research, and take all the points to heart. Now is the time to learn how to manage your money. If you start out doing it wrong, you might never get back on track. Having all money can buy will only lead to issues when you actually have to pay.