Having a credit card seems to have become as necessary as having good water to drink. It is impossible to make on-line purchases, reserve a rental car, or an airline ticket without one.
Our little pieces of plastic have become a way of life with most of us and we often overspend without giving it much thought about the growing amount of the credit card bills. As you know if you fail to pay off the full amount at the end of the month, interest is added to your bill and the amount accumulates rapidly.
Of course you can avoid this interest by paying your credit card in full each month. Think about this; you purchase something costing $100 and pay only the minimum each month. Your interest is added to your credit card bill varying from 5% to an astronomical 40%. Each month you fail to pay in full the bill continues to grow until the original $100 purchase ends costing you double.
If you can, pay the full outstanding amount at the end of each month. For some people this is impossible; here are some effective ways to reduce those bills.
?Use your savings. You do have a savings account don't you? Many people don't but you should. Even if is $25 per month, pay yourself first. The interest rate your bank is paying you is much less than the interest on your credit card so use those funds to pay this off.
?Transfer your balance. Many credit cards will allow you to transfer amounts from other cards for 0% for a set period of time.
?Even if you can't pay the entire amount each month pay extra. I currently have a card with a significant balance and the amount owed each month is approximately $80 but I budget and pay $125 to get this paid off. And in the meanwhile I put the card away so I'm not tempted to use it. And yet - watch out, this same bank is constantly sending me inducements to "charge more". Don't fall for it.
?Use your credit cards for essentials only. For everything else use your debit card which is tied into your bank account. Two things, if you don't have the funds in the bank, you can't use the debit card and if you don't have the funds you can live without it anyway.
?Finally, if you are in trouble with your credit card bills get help immediately. Don't ignore your problem, it won't go away. You may be a candidate for credit counseling. A good credit counselor will negotiate with your creditors and stop the late charges from piling up as well as reducing the total amount owed. We have some very good credit counselors on our website:
http://www.1-800BadCredit.com Get the help you need now, you will be glad you did.
