Credit card is a very convenient alternative to paying by cash. It is a simple form of plastic card that has become the most common payment tool accepted at 30 million locations worldwide.

It can be an asset to your lifestyle, but if not handled carefully it can become a liability. Shopping and credit cards: an exemplary combination that can lead to big trouble. So read on to help you maximize your shopping and charging experience — and avoid some common dangers of owning one.

In recent years shopping has become part of everyday life and competes head on with more traditional ways of shopping for everything from groceries through to travel. The main advantage of having a credit card is convenience but if you’re not good at budgeting and managing your finances, the over-use of credit cards can leave you with a debt that you’ll surely regret.

Advantages

* Allows flexibility since it is more convenient to carry than cash.
* It offers free use of funds (obviously), provided that you will pay your balance in full and on time.
*Allows accurate record-keeping by consolidating purchases into a single statement (in a way helping you consolidate your expenses).
*Cheaper for short term borrowing.
*Convenient for remote purchasing – ordering/shopping online or by phone.
* Can be accessed 24/7.
*Most cards offer additional incentives such as reward points, cash back, free miles etc that you can redeem.

Disadvantages
* Its convenience can cause one to become an impulsive buyer and tend to overspend because of the ease of using it. It encourages one to go beyond the budget like purchasing items that one cannot really afford.
*Introduces an element of risk as lost or stolen cards may result in some unwanted expense and inconvenience (one is exposed to fraudulent transactions, identity theft etc.)