(AP) — After paying off credit card debt, it’s important to evaluate your relationship with plastic to determine whether a second chance is worthwhile.
While a break from credit can be necessary and useful for establishing new spending habits, doing away with a credit card entirely could negatively impact your credit.
Credit cards aren’t a match for everyone, but they can be helpful tools in your credit journey if used responsibly.
If you’re considering returning to credit cards, a stay-out-of-debt plan that is tailored to your motivations may prevent debt the next time around.
- Reflect on Spending Habits
- Use Cash for Certain Categories
- Track Spending
- Use Credit Cards for Planned Purchases Only
- Have an Emergency Fund to Fall Back on
- Don’t Store Credit Card Info on Websites or Apps
- Get an Accountability Partner
- Update Your Strategy