Credit cards have their place in personal finance and it is not in stretching your credit limit. Here are pointers on how to maximise the value of credit cards (and the not):

A) Their value is in:

• Receiving 21 days credit free on the purchases you make;
• The starter gift most banks offer you;
• Consolidating your monthly spending;
• Maximising the discounts credit cards offer on shops, restaurants, and gas stations you patronise; and
• Enjoying 0% interest on purchases you make (although most have an addendum that you cannot cancel the card until the period is over, e.g. 24 months so read the fine print carefully.

• Buying that big ticket item, car, downpayment on house you can't afford;
• Rolling over every month and paying only the minimum sum;
• Not paying off the full amount every month.

1. Pay off as much as you owe every month.
2. Transfer as much if not all to a lower or even better, 0% interest rate account.
3. And then, go to 1.