Like most Americans, you will probably take on debt at some point in your life. And by managing debt wisely, you can potentially improve your saving and spending habits – and even your ability to invest for the future.
Let’s look at some of the common options available for borrowing and using credit: Credit card – When used carefully – and not overused – a credit card can be a valuable tool, especially if you travel frequently. Many people tend to stick with the same credit card without exploring what else is out there. Try to find a card that rewards you in as many ways as possible – and then keep your eyes open occasionally for even better rewards as they can change from time to time.
Obviously, you want a card with a low interest rate, although ideally, you’d like to pay the card off each month without incurring any interest. You also should take a close look at a card’s other features. Are you getting a competitive amount of mileage points? How much is your annual fee? Do you have a generous “cash back” program? Do you have access to “extras,” such as airport lounges?
