You need to pay back everything you buy with a credit card. Therefore, don’t buy things you can’t afford. An alternative is to think of it as an ATM debit card for your checking account – after all you SHOULD have money in the bank to pay for what you’re about to buy, right?

Use your credit card receipts side by side with your monthly bill. Look for irregularities and report problems to your credit card issuer immediately.

Late payments (or no payments) mean finance charges on the remaining unpaid balance. Plus, if you only pay the minimum, the interest on the unpaid balance will continue to rise – meaning your purchases could end up costing much more than the original price.

Late payments or even non-payment of debts can damage your credit score. This affects your credit history negatively — making it harder for you to purchase larger items such as cars or property. IT could also become more difficult to rent an apartment, find affordable insurance, or even—in some extreme cases—land a good job.