Many Americans rely on credit cards for their everyday purchases. After all, it’s so easy and tempting – that new pair of shoes looks great, and while they’re expensive, you can pay them off over time, you think, barely giving things a second thought as you tap your smartphone or swipe your card for payment.

But these spontaneous purchases come at a cost – interest that accumulates if you fail to pay your charge card bill in full each month. That debt is bad enough at any age, but when you’re facing retirement and need to live on a fixed income, it can be a brutal financial strain.

While you may not be willing to part with your credit card as you reach your Golden Years, there are a few key considerations for using it when relying on a fixed monthly income.

1. Recognize that not all credit cards are alike. When trying to decide whether to sign up for a card, think about your intended use. While it may offer an attractive rewards program, if you’re not paying off the balance each month, you could pay far more in interest than any rewards would provide. Additionally, these cards typically come with large annual fees and even higher interest rates. Think twice before agreeing to that new card and instead look for a card with a lower interest rate.*

2. Building up a good credit score can help you get a lower interest rate on a credit card. To improve your rating, make sure that you pay your bills on time and minimize your debt. It’s a catch 22 – if you could pay your bills on time each month, you wouldn’t necessarily need a credit card.

3. Try your best to reduce your debt each month. While doing away with all credit cards may be impractical, reducing your debt will help keep your finances in order and your fixed income more predictable.

If you need help reducing your debt, talk to a financial professional who could help you develop a plan that works for your habits and lifestyle.

Call or email the financial professionals in the First Financial Investment & Retirement Center at 732-312-1534, mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com.

 Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

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*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.