Applying for your first credit card can always be a fun time. It’s the start of your adulthood, making you feel older and more responsible. The thing you may not know is that a credit card can get you in a world of hurt if you don’t use it properly.

The nice thing about a credit card is the fact you can just pay off your bill at the end of the month, instead of giving cash at that moment. This comes in handy if say, you don’t get paid until the next week and you need to make a purchase now. As long as you pay off your bill on time, it will be like an interest free loan.

When using your credit card, it’s always important to mark down and tally up what you have purchased. This is important because these bills can add up really fast. This is when it can get you in trouble. You can’t have the mentality that you will just put it on your card because it’s “free cash” for 30 days. This isn’t the case! If you don’t pay off your bill in full, you’re going to get killed with interest rates! This is where the credit card companies make their money.

The nice thing about credit card companies is that they allow you to set up an online account. From there, you will be able to access your account information and see exactly what you have purchased. This is helpful because then you will be ready for your bill when it comes at the end of the month.

If you follow these steps, you shouldn’t have a problem with a credit card –

Make sure you know exactly what you’re putting on your credit card. Don’t spend more than you can afford to pay off at the end of the month!

Always keep the right amount of money off to the side to pay off this bill. If your bill is $100, make sure you have $100 sitting around, so that you don’t get hit with the awful rates.

Be responsible. This is the important one. Don’t buy things you don’t need and don’t treat the card like it’s free cash! It isn’t.

It all comes down to being a responsible adult. You hear horror stories all the time on the news about families falling into debt for stupid reasons. The reasons are simple. People are living above their head. You don’t need to keep up with the Jones’ nor do you need to buy things you don’t need. 24 pair of shoes isn’t necessary. Purchase items you need for everyday life and don’t overspend and you will be debt free for years.