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Credit Card News: Nowadays, every second person uses a credit card to manage their finances. The current generation—specifically Gen Z—shows the most interest in them, as credit cards allow them to upgrade their lifestyles. They facilitate easy online shopping, food delivery, travel bookings, subscriptions, and digital payments.

However, young users often fail to realize that improper use can turn a credit card into a major burden. Spending without a proper plan can increase the debt load in the future. Therefore, it is crucial to use credit cards wisely. Let’s look at how you should manage your credit card spending.

How much should you spend?

If you use a credit card, your monthly spending should ideally remain between 20% and 30% of your take-home salary. Spending beyond this limit can make it difficult to pay bills on time and increase financial stress.

For instance, if a person’s take-home salary is ₹60,000, they should aim to keep their monthly credit card spending between ₹12,000 and ₹18,000. This keeps the budget balanced and ensures savings remain unaffected.

Don’t just pay the minimum due

When spending consumes a large portion of one’s income, many people opt to pay only the “minimum due” instead of the full bill. Doing so results in interest accruing on the remaining balance every month, causing debt to gradually pile up. Therefore, you should always pay the total amount due in full each month. Paying only the minimum due allows the bank to charge late fees and interest, making repayment increasingly difficult in subsequent months.

Manage Multiple Cards

If you hold multiple credit cards, keep track of spending and payment schedules for all of them. Excessive spending across different cards can inflate your total outstanding debt. Using auto-pay features or setting reminders can help ensure timely payments.

Spend Wisely

While credit cards offer benefits like rewards, cashback, and other perks, they should not be viewed as a source of extra income. Spending within a budget, paying the full bill on time, and using the card only when necessary are the best ways to maintain financial security. For Gen Z in particular, adopting sound financial habits early on can help avoid debt and financial stress in the future.