Keep the right perspective
Many of the issues facing the problem of credit card debt, the availability of credit cards in the past 75 years, advertising has come from changes in value. According to the director of education for Linda Tucker, North Little Rock, Arkansas counseling service consumer credit, credit card was not until the 1960s began to become available to the average consumer. Now, today, almost everyone can have access to credit cards.
Advertising plays a role. Author Howard Dvorkin, the credit is hell: way out of the founder of the organization that provides education programs and consolidated debt management credit counseling service debt, and debt, a survey of people one person, from 300 to 400 According to the consumer Sun that are exposed to advertising. When you combine this with the shift from saving for the future, we have a society that tries to catch up to meet the desire of the moment of Jones. When you add a purchasing power that comes with the credit card, you have the complete formula for disaster.
However, it is necessary there is no real reason to do this. Dvorkin, if there is one thing consumers want to know, is that it must be the slave of the temptation of advertising, or to the credit card company you are. You can control the financial soundness depends on the credit card without you!
To manage your finances
Before extending a credit card, when you start a strategy Until now you also, to help keep you on track. According to Tucker, the first step, we determine the monthly income and expenses. As part of the cost of these monthly, this figure is 5-10% of your income, such as emergency savings, retirement account, such as long-distance, to ensure savings for the short term. To you, if you have some savings, you need to put a large amount of debt with a credit card at the time of the crisis is eliminated.
To set a budget because it is not always easy, we offer budget counseling free credit counseling service if you use the consolidated some help. In addition, to confirm whether or not you have the office of consumer credit counseling service in your community, you can refer to the phone book.
To set up a budget is a first step, attention to it is a difficult task in many cases, and the next. Will help you to maintain the goal of track set, to put the incentive in place. Tucker suggests that the savings to set goals with a deadline. Savings goal, can include emergency, vacation, a car, of course, please do not forget the goal of such retirement, such as long distance. Tucker also is said to can become a great incentive rewards program as well. As a reward you even if you choose, just please keep in mind that it should not endanger the effort did it for you to manage your finances.
Finally, you will need to monitor how much charge your card in relation to credit limit. Otherwise your credit score can go down, you can claim 50 percent from beyond the limits that are available for 30 of you are not. For more information about the credit score is, I read an article on our path to the high credit score.
Card shop right
Dvorkin says that it's important to get a personal credit card to shop around and eyes, of a particular situation really was. Ideally suggest that to obtain a very low fees and low interest rates, or he does not have. Although it will take some time to compare the various offers, in the high saturation of the market, you can find the perfect fit for your wallet. Refer to the Reports section of CardRatings.com card to shop for every kind of credit cards, including credit card for those with remuneration at all, low-rate business, or poor people.
Read the fine print
Afternoon read the fine print, the sound very appealing, but probably do not have, time spent reading can be a headache for you, in the long term to save time for hundreds of dollars. How to get to the grace period you have and how much reward from your interest rate and fees, all will understand.
Know your interest rate
If you regardless of whether or not pay the balance in full each month, you are trying to use a credit card, you need to know the interest rate. This is not only to know what interest rate you are offered, interest rates, the issuer is not only actually give you approval, it means. Credit card issuer, so you can raise interest rates a little warning for obvious reasons with little or no further, please check the speed of the monthly statement.
Because no emergency, you should also carry a balance for people who do not, you need to know that the interest rate. Unfortunately, and to decompose the car, the job is lost and death occurs, and ends with marriage. It, while always a good idea, but also leave a second car or other choices, takes longer than expected to search for work and sometimes have emergency funds, and then put the expense of some degradation on the card. If you do not to the latest state might end up paying a lot of benefits than you need to do to interest rates.
Fully pay the balance
This is important in maintaining control of your credit card. Before you can use the credit card for the purchase, "I am? Do you have the funds to pay for this" emergency fund in your stomach, then cover the whole amount must be charged, please ask yourself You. In case of emergency, experts say to pay more than the required minimum payment of at least.
Time to pay
Referred to in the credit and debt management guide for Michael Kilian, of About.com is, make a late payment to anyone, including the payment of car or house and do not have. Also any creditor late, in the universal default clause of the terms and conditions of credit card, you can credit card company to increase the rate of interest because if you are paying your utility company. For more information, please refer to the article of our universal default.
In fact, Killian, it is recommended that by the credit card company, that very early if at all possible to account for time and processing of mail. It is calculated based on the average daily balance you are interested in pay if the payment will arrive before the actual due date will be of interest to save money. Payment, so you can bring down the average value, you will be happy to pay less interest if.
Some people have become online pay claim in order to avoid potential problems with e-mail. Killian, for payment, increased risk of fraud by hackers, but we do not recommend this form - If you do not provide encryption company, or is not a reputation, in particular - it's more to the delinquency without a doubt is a good option.
To use it instead of cash, as credit card
In a sense, by paying your balance in full every month, you will need to use your credit card like cash. However, it has to remember is not actually cash. Please imagine that sophisticated in your hands, the feel of the plastic card. It is not as sophisticated as you slide right out of the wallet with a little effort when you check-out counter. Every time you pull it, it's the same appearance and feel. You are climbing higher and higher rates that can not feel physically.
Please try to imagine a wad of twenties now. Is the thickness that you (as well as you can afford to buy the intention of your purchase, you feel at least) to feel your hands full ... the rich for the first time it pulled out. However: 0), now, you know you can not afford to buy wad over this eventually becomes slightly smaller until it is gone ... and with each purchase. Dvorkin, call the factors of this green - in cash or how much you have physically, you can feel how little.
The point is that there is a need to be control of your credit cards and consumer habits. If you use a credit card to purchase all of your, who will be wiped out it is much easier.
To limit the plastic in your wallet
All credit card, its own set of conditions, including interest, fines, fees, grace period and the various date is included. It is, if you need to remember the card has a minimum rate to make payments on time, you keep track of the cards of one or two, you from made a mistake affecting the credit history of your how to save is much easier.
Avoid the extra expense
It is also before you know it, is secretly a little extra cost to you sometimes.
Cash advances
Cash advances is much higher interest rates, fees, and no grace period is included in general. Moment, even if you pay your entire balance in full every month, you take a cash advance balance sense to start paying, the interest still to pay the interest.
In addition, credit card companies, apply payments to balances with the lowest interest rates first. In advance will continue to earn interest of 20% until fully paid off the balance of the purchase of $ 2000 cash of $ 200 So your.
Extra product
Credit card companies will try to get to purchase additional products such as insurance and protection from such fraud. Truth of the matter is not usually need it. Victim of fraud, in most instances, if you are not responsible for any amount, by law is responsible for the maximum of $ 50. If you are thinking about how you add in insurance, credit card protection insurance Read our first article - What should you get it?
Early education
The best way to prevent before to qualify for a credit card, you have been teaching our younger generation about the money all of them. The statistics show that even if you do not know how or have a personal finance class students so far, to balance the checkbook, have entered the university. Are eager to sign up to arrive at the campus student credit card issuer once yet. College students are up the bill. Because they can pay credit card bills, some dropped out of college in order to find a job even. And graduate students who do, usually, please enter the adult and thousands of dollars in credit card debt and student loans.
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