Although credit is very useful for buying and investing in things that you can't afford without extra help, it's a good idea to keep your debt low. Getting into debt is not bad; The bad is about getting into debt or getting into debt for bad reasons.

The firm budget is essential for the payment of the debt. When you pay monthly, it's a good idea to keep your combined debt payments below 35% of your monthly income. This percentage may be different in some cases, but the idea is to make sure that you have enough money to meet your obligations.

Before taking out a loan, it is important to read and understand the contract completely. Also, it's a good idea to keep your creditors' contact details in a convenient place and let them know if there's a problem. It is very important to understand the interest rate acquired and the time it takes one to pay the debt and its interest; By acquiring credit, one pays both! Paying off your credit card balance in full, or at least more than the minimum, protects you from interest charges that are higher when you pay less.

If a credit card is lost or stolen, it is essential that you notify the financial institution that issued the card immediately. If you don't, someone else may use that card, spend your money, and lower your credit score. Your card issuer can cancel the card and send you another one if that happens.