Credit Card Survival Tactics

Love 'em or hate 'em, most of us can't live without them: credit cards. Those shiny plastic rectangles represent financial freedom and convenience in an age of consumerism and instant gratification.

But do you really know what you're getting into when you slap the plastic down? Recent statistics show that personal debt levels have increased dramatically in recent years. In late 2014, the average Canadian consumer is expected to owe $28,853 – and that’s not even including mortgages, which can easily tack on another $75,000 or much more. And with a debt-to-income ratio of 1.63, Canadians have gone from being among the best savers in North America, to carrying some of the highest consumer debt load

Keep these nuggets of information in mind, so you can avoid the perils of too much credit card debt:

• The average person spends 112 percent more on a credit card than they would if paying cash. If you can't pay cash, never go to a mall or store without taking a specific list of exactly what you need.
• Have only one credit card, preferably one with a low annual interest rate and a suitable credit limit.
• Pay off your entire bill each month to avoid high interest penalties. Check your online statement regularly to avoid late payments and over-your-limit credit fees.
• If you can't pay off your balance, pay as much as you can and/or switch to a card with a lower annual percentage rate.
• Before you whip out your credit card, ask yourself, "Do I really need this?" Saving may not be as much fun as spending, but you'll thank yourself later.
• If you have more than one credit card debt, pay off the card with the smallest balance first. Then tackle your next smallest credit card balance. You will feel a sense of accomplishment by paying one credit card in full at a time.