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All About Credit Cards
It’s so easy to whip out
the plastic when you’re on a shopping spree or out to dinner and worry
about paying it at the end of the month. But it can get you in trouble
quickly! Many people in America are drowning in thousands of dollars in
credit card debt and being eaten alive by their interest rates. Spend
wisely.
- Many
credit card companies are more than eager to extend credit to you
and continually increase your limit. Just because they increased
your limit to $20,000, doesn’t mean you can handle $20,000 in
credit card debt. The interest rates on these cards can be 18% or
higher meaning that if you pay only the minimum payment due on the
card, in most cases you aren’t even paying all of the interest
that accrued, much less on your actual balance. By paying the
minimum payment, you could literally be trying to pay off your card
for decades. Not years, decades!
- Do
your best to consolidate your credit card debt to one card. One
payment is more manageable than several each month. If you’re
unable to do this, begin with the card with the highest interest
rate and work to get it paid off while paying the minimum balance on
your others. When that one is paid off AND you’ve closed the
account, move on to the card with the next highest interest rate and
so on until you have it down to one card.
- Call
your credit card company and negotiate for a lower rate. Tell them
you have offers from other companies with lower rates. As long as
you have consistently paid on time, many companies will lower your
rate but you have to make the call.
- When
putting purchases on a credit card, you should be careful. It is
very easy to run up debt that sometimes seems impossible to pay off.
One of the coolest tricks I’ve heard of (pun intended) is to put
your credit card into a container of water and freeze it. If you
have the temptation to make a purchase, take your credit card out of
the freezer to thaw out. Once it’s thawed, if you still want it,
go ahead but I’m willing to bet you will have changed your mind.
- Some
people use their credit cards to reap the rewards such as frequent
flyer miles. If this is your case, just be sure that whatever you
put on the card, you can pay off the balance at the end of the
month. If you end up paying monstrous amounts of interest on the
balance, then those free miles weren’t as free as they originally
appeared to be, were they?
Remember, that you only pay
interest if you don’t pay off your card each month. Be responsible
with your credit cards and your money. You’ll save yourself lots of
late nights worrying and not answering the phones to avoid the
collection agencies. Be responsible.
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Credit Rating - Your Most Important Asset!
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Tips
for Keeping Holiday Expenses Under Control
It's
the time of year when most Americans go overboard on spending. Don't let
January be a depressing month when the bills start rolling into your
mailbox.
The
10% Rule Is Best
Saving
10% each month can be one of the best moves you make in your financial
life.
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