To Use Credit Cards Wisely
We like to use credit cards because they are convenient. But they are just like drugs. You will become so easily addicted to them. They offer short term pleasure and long term pain. Nobody wants to live in credit card debt. This is why you need to stop credit card debt. Here are some tips to help you relieve some of your financial worries.
1. Always treat credit cards like cash and debit cards. This is the basic rule of avoiding credit card debt. When you are about to make a credit card purchase, ask yourself if you have enough money in an account to cover that purchase. Write it down or at least mentally subtract it from the running checking-account balance in your head. Unless it’s a really emergency. If you are not able to pay in cash, then you should not pay for it with a credit card. Do not count credit cards as cash advances, only as a convenient way to not have to carry as much cash. Credit card can always land you in a debt.
2. Shop with a purpose. Don’t go shopping unless you have to. Before you leave the house and start shopping, write down a list of items that you need and can afford and stick to it, and do not buy anything that’s not on the list.
3.Choose wisely. Before you buy anything, picture three other items that the money could buy. Which do you choose? Don’t buy something just because it is a “good deal” or you have a coupon.
4. Pay your bills in full and on time. Make it become a ‘full time’ job. Not just the minimum payment, but in full amount. If you pay anything less than the full amount, then you will be charged with interest fees. If you pay it after the due date, then you will be hit with the late charges. Remember that you are trying to prevent or stop your credit card debt.
5. Switch plans. Take a good look into the the costs and terms of your credit card plan. If you always pay your monthly bill in full, the best type of credit card is one that has no annual fee and offers a grace period for paying your bill before finance charges kick in. If you don’t always pay off your balance each month (and 70 percent American cardholders fall into this category), be sure to look at the periodic rate that will be used to calculate the finance charge. You will also need to consider if the plans offer a variable or fixed interest rate on these credit cards.
6. Control yourself. No false promises. Don’t say to yourself, “I’ll charge it now and pay it off next month.” Just don’t. You’re most likely to let it flow and end up in a credit card debt situation.
7. Ask for help. Don’t be afraid to ask for it, if you can’t resolve your debt problem alone. Look for a local non-profit agency with a long history , not one that pushes you on to a debt management plan without a close look at your finances.
8. Stop the marketing offers. You can stop those credit card offers that arrive in the mail by telling the credit bureaus to take you off the mailing lists. If you do get a credit card offer in the mail, shred it immediately. Don’t even bother to open the envelope. You never want to have more accounts open than you can manage at any one time, whether considering your payments, or the time it will take to sit down and sort them all out so they get paid enough and on time. Remember you must prevent or stop credit card debt and this is not an easy thing to accomplish.