Credit cards or Plastic Money come quite handy when you are short on cash, its a good upto 50 days of interest free loan. Credit card bills can be a very rude shock if not used wisely.

Its a double edged sword where Card companies make money only when you default payment in form of Interest Charges and Late Payment charges and other fine print. Trust me this process can be quite traumatic. What is even more scary is the fact that your Credit Rating or Credit history will go for a complete toss. Getting a loan will suddenly become a rocket science or the interest rates will hit the roof.

But there are some very simple things I realised and not very difficult to follow to tame this plastic beast.

Must Do :

1. Keep as few cards as you can. I believe 2 should be good, one primary card and other only for emergency. Close any unused cards.
2. Keep Official / Corporate expenses separate from Personal expenses

3. Ensure that you pay as much as you can of amount. Set reminders, this will ensure that you are not reported as a Defaulter.
4. Settle any disputes with the card company at the earliest.
5. Set alerts payments and purchases

Try to Do

1. Not to use Credit card, Use a Debit card / Cash card instead

2. Set a limit on your credit card lower than you earning each month

3. Regularly check your card account for charges that you do not recognize and immediately talk to the bank

4. Keep a track of your credit history if you can

5. Preserve your charge slips till bills are paid.

6. Encash reward points for things you buy on card.

7. Have alternate arrangement to pay off the card bill in max 3 months in case of defaulting.

8. List purchases made on card on a simple piece of paper or a complex piece of spreadsheet

You must not

1. Delay Payments
2. Transfer balance / refinance you card debt
3. Delay payment of valid charges
4. Use it for things you dont need
5. Forget to follow tips above