For many a military family, credit card debt is the bane of their existence. Do you know how to properly utilize a credit card?

Yep...1, take scissors in left or right hand. 2, cut card. 3, deposit in trash can.

SFC Christopher Perry I have two credit cards that I only use for larger purchases. I pay them off as soon as I receive the bill. There is no reason to pay high interest to a credit card company when you can better use that money elsewhere.

I have 21 financial accounts according to the Credit Bureau. Of those 21, 12 are open credit card accounts, resulting in a total credit limit of $70,000. Because of my SCRA benefits, I have been fortunate enough to own some very prestigious cards. My credit score is climbing exponentially. However, I did not get to this point over night.

At one point I was considering filing for bankruptcy because I didn't know how I was going to make my payments. I asked myself, "How did I get myself into this mess?" Going in, I planned on using a credit card like a debit card. Somewhere that got lost. I spent close to ten-thousand dollars on a parachute, I bought a $20,000 car on a credit card because 4% APR was much better than NFCU's 11%.. I furnished a house and bought a wedding ring that cost more than my parachute. I have felt the crippling sensation and fear that comes with irresponsible use of credit cards..

However, in the short coming months I will be completely debt free. I have learned how to manage debt andcredit cards properly (the hard way). At one point I had to make my cards inaccessibly. Everything was set to auto-pay (still is), but I was living on so very little in order to get by. That was a terrifying and very stressful time in my life.

What I will say, however, is that once your head is above water and you can properly make payments without having to sweat every time you buy a bag of M&Ms, you can expect your credit score to go up. Credit cards are a very useful resource. The rewards points, money back, and rewards miles I have earned from proper credit card use has been outstanding. I am flying both my wife and myself home completely free just for using these cards. So they definitely have their perks.

Understanding how credit cards work, how APRs affect payments, perks and benefits to cards, as well as how they affect your credit score is important, however meaningless unless you have a plan in place on how to pay those debts off while maintaining a suitable and responsible lifestyle.

Once I am out of debt, I will cycle through my cards every month, using them like I would cash or a debit card. This way, I continue to show activity on the card, am eligible for credit line increases, and continue to earn rewards on each card - all the while reaping the benefits that inherently come with the cards (like a buy one get one free airline ticket *CHA-CHING*.

**On a side note: if you are active duty, you have SCRA benefits. Many companies will lower your APR to 6% or less while you are on active duty and retroactively refund the difference of any APR above 6% you paid BEFORE you joined the military (including student loans and credit cards). Many credit card companies will allow you to keep this perk 1 year after you exit the service. This is how I am able to own and afford two cards that would normally cost $450 a year. The only downside to owning such cards is that once you leave the service, those fees are no longer waived. Thus, if you do not have other cards of a similar age, this may make a small impact on your credit score (negligible). Because of the number of cards and the average age of my account history, when these accounts are closed, it will have very little impact if any at all. However, because I am reaping literally thousands of dollars in free benefits because of SCRA, it is completely worth a 1 or 2 point impact years from now. All you have to do is call and ask them to apply your SCRA benefits to your account. (Navy Federal and USAA will NOT apply these benefits to your account any time after you joined).