How to Use Your Credit Cards as You Age

Life is made up of many stages, and those stages actually help us determine how best to use our credit cards. Don’t believe me? Experts say that parents should monitor the credit habits of their teens and college-aged children. Even into the 20’s and 30’s, credit card use should be kept to a minimum. Here’s some advice for putting your cards to good use at any age.

Twenties and Thirties

These are the decades when we often have “the wants”. We want a nice car, we want a big house, and we want a big-screen TV and the latest i-Phone. The problem is that most of us are plagued with college debt during this time, and we’re trying to get by on entry-level salaries to boot. Experts recommend paying for most things in cash. Don’t charge things you can’t really afford. If you do need to make a credit purchase, look for a low-interest credit card with no annual fee. Remember, early spending habits set the tone for our financial lifetime.

Forties and Fifties

This is when most people find themselves on secure financial footing. Their dependents have left home, and they can finally afford to buy some of the luxuries they dreamed of in their youth. Still, don’t go overboard with the credit cards. You’re probably paying for a mortgage, vehicles, and possibly some college educations for the kids. Consolidate your credit card debt to get it paid off faster. Then take the money you’d spend on credit card payments and invest in a retirement fund.

The Golden Years
Surprisingly, seniors are racking up credit debt faster than any other demographic. Because people are living longer than ever before, it’s important to make a realistic assessment of your finances before you retire. If credit cards are your main source of funding, you could try adding to your income with a part-time job or taking out a reverse mortgage on your home.

Any Age

No matter how old you are, start getting into the habit of making your credit card payments in full, on time, every month. When you carry a revolving balance, you open the floodgates of high interest rates and finance fees. Paying off your balance every month will build up a strong payment history on your credit report, and will also help you stop debt before it spirals out of control.