The slowdown in today's economy has prompted all of us to take a closer look at our finances and to think about what would happen if we lost our job. For so many people today, the scariest part of that idea is what we would do about our credit card debt. It's so pervasive that there are few people who don't have outstanding balances on one or more credit cards. Here's what you should know.
1. We are talking about unsecured debt that accumulates interest if not paid off each month. If you miss a month you can count on being charged a late fee and being reported to the credit reporting agencies. Missing a payment can stay on your record for seven years!
2. Paying just the minimum payment each month will not get you ahead very fast at all. But be sure you do pay each month. If you don't pay a card one month, it could happen that you other card companies will raise your interest rate to you because of the default on an unrelated card.
3. Credit card debt starts early. An average college graduate leaves school with over $2,000 in debt. Paying off is a tough lesson to learn just as you're starting your adult life.
4. Credit cards aren't bad. It's just our unrestrained use of them that gets us into trouble. We should only charge what we know can be paid off at the end of the month.
5. A large amount of debt will reduce your financial options. If you have a low credit score because your credit cards are maxed-out, then you're going to pay a higher interest rate when you want to buy something.
6. Once you have debt under control you will need to make a commitment to keep it that way. Review your expenses and how they relate to your income. Then make plans to save for those things that pop up when you aren't prepared and which make you reach for the credit card.
Take responsibility for your money and what you spend it on. If you've let yourself get in over your head then ask for help and we will find someone to lead you through the maze that is the repayment of credit card debt. Credit card balances grow when they're not being observed so be vigilant about keeping them in check and serving you instead of being a drain on your money and your emotions. It's your money, let's use it to benefit ourselves and our families, not to hang over our heads like a black cloud. - 29866
1. We are talking about unsecured debt that accumulates interest if not paid off each month. If you miss a month you can count on being charged a late fee and being reported to the credit reporting agencies. Missing a payment can stay on your record for seven years!
2. Paying just the minimum payment each month will not get you ahead very fast at all. But be sure you do pay each month. If you don't pay a card one month, it could happen that you other card companies will raise your interest rate to you because of the default on an unrelated card.
3. Credit card debt starts early. An average college graduate leaves school with over $2,000 in debt. Paying off is a tough lesson to learn just as you're starting your adult life.
4. Credit cards aren't bad. It's just our unrestrained use of them that gets us into trouble. We should only charge what we know can be paid off at the end of the month.
5. A large amount of debt will reduce your financial options. If you have a low credit score because your credit cards are maxed-out, then you're going to pay a higher interest rate when you want to buy something.
6. Once you have debt under control you will need to make a commitment to keep it that way. Review your expenses and how they relate to your income. Then make plans to save for those things that pop up when you aren't prepared and which make you reach for the credit card.
Take responsibility for your money and what you spend it on. If you've let yourself get in over your head then ask for help and we will find someone to lead you through the maze that is the repayment of credit card debt. Credit card balances grow when they're not being observed so be vigilant about keeping them in check and serving you instead of being a drain on your money and your emotions. It's your money, let's use it to benefit ourselves and our families, not to hang over our heads like a black cloud. - 29866
About the Author:
Is Your Credit Card Debt Out Of Control? Debt settlement is a super alternative!Before filing for bankruptcy, go to Arc Financial, we have the experience negotiating with creditors and get more information on what is a debt settlement strategy today!
