Credit card debt can present a serious drag on your finances, with high interest rates and penalties making it almost impossible to recover once you’ve fallen behind. But when used responsibly, credit cards can be a powerful tool for rebuilding your credit after a bankruptcy, demonstrating to lenders that you’re capable of effectively managing your finances. Whether you’re working on reestablishing your reputation or you’ve just gotten your first card, the tips below will help you avoid financial trouble.

How to Manage Your Credit Cards

1. Pay Off Your Balance Each Month

Credit card companies profit by tempting users to spend more than they can repay, with low minimum payments that primarily go toward the interest. Fortunately, you can avoid these fees, save money, and rebuild your credit more quickly by paying off your available balance each month. If you do have to use a card for a major purchase, paying the balance off as quickly as possible will save money and help you avoid burdensome debt.

2. Make Your Payments on Time

As the single largest factor influencing your credit score, your payment history accounts for approximately 35% of your rating. Making on-time payments will also help you avoid late fees and sudden interest rate increases, which can add hundreds of dollars to your credit card debt.

3. Protect Yourself From Fraud

Identity theft can quickly derail your efforts to rebuild your credit and leave you responsible for debt that isn’t yours. Never let anyone else use your credit cards, and examine your statements every month for any suspicious transactions. If you report fraudulent purchases immediately, you likely won’t be responsible for those charges.

With over 20 years of experience and an in-depth understanding of the bankruptcy system, Brian R. Cahn & Associates, LLC has helped borrowers throughout northwest Georgia find their way back to financial solvency. If you’re burdened by credit card debt, their team of attorneys will identify all of your options, help you make an informed choice, and walk you through every step of the process. Visit their website for more on rebuilding your credit, follow their Facebook for more financial tips, or call (770) 382-8900 to discuss your credit card debt and schedule a consultation in Cartersville, GA.