Use Credit Cards--Let Power be mine

I have often seen people cribbing about having credit cards and what they do to your spending habits and how you get into the clutches of debts raised via credit ;-)

So is it the fault of the credit cards or that of the card holders? Is it the credit card that springs out itself at the mention of shopping or is it the card holder who goes out shopping just on the strength of the plastic money.

I have been using credit cards now for over seven years and am an ardent believer in the power of credit cards. I have 10 credit cards from different banks and to date I have never ever paid any interest charge, and have been successfully using my credit cards for all my needs, from the smallest to the expensive-most. And enjoying them thoroughly.

There is no secret to using credit cards, it is only the common sense that you need to apply for this. Listed below are a few points that can be of potential help to anybody using the power of the plastic money. Here are the "Let Power be mine" rules:

1. If you have more than one credit card, have them preferably from different banks.
2. Be very sure, how much disposable income you have every month.
3. Put that disposable income in a separate account.
4. Use your credit card for all your needs during the month, limited by your disposable income.
5. At the end of the month, put all the disposable income into the credit card account [Payments]
6. Perform step (5) before waiting for credit card bill to arrive.
7. If in a month, you have to definitely go above your disposable income, plan accordingly.
8. Be aware that you are spending more than what you have.
9. If you can make payment of the over-spent amount in the following month, it's fine as you will then only be paying interest for a month.
10. If you cannot make credit card payment the following month, ponder upon balance transfer to the other credit card you have, if applicable.

For all the above to work, you need to be aware of your billing cycle. Through the use of above, you will find yourself in a very healthy financial position, not to mention all the freebies that you get thorugh use of credit cards. Try getting a cash-back card or a card that suit your specific needs; there are too many out there in the market.

Let me know all your questions..I think myself to be a very good user of credit cards.