Manage and Eliminate your Credit Card Debt
Everyday you get credit card offers, by mail, on the internet, etc. But you need to act consciously and opt out if you are not sure youíll be able to afford it or if you donít trust yourself with it. If you know you overspend and have no control on your expenses, it is wise to start modifying such behaviors and avoiding getting extra credit cards would be a wise start.
However, If you trust you will act wisely, then it would be clever to follow these tips to stay on track and maximize your savings while at the same time enjoying the benefits credit cards undoubtedly offer:
Choose Your Credit Card Wisely
You should choose your credit card cautiously. The main item to look at is the interest rate; you should try to find the lowest rate available. To do so you can join one of those internet companies that offer reviews on many credit card offers, these sites also offer direct links to the credit cards application so actually youíll get all the work done for you.
Control Your Spending
Once you get the credit card, be extremely careful with your spending. If you canít pay the whole balance each month, then try to pay the highest amount possible. Otherwise youíll get into a vicious circle and your credit card debt will grow so much that youíll find yourself unable to pay the minimum in a short time. Also, if you have multiple cards, try to pay the maximum amount possible in the credit card with the highest interest rate and leave the others with the minimum required till you pay it off completely. Then carry on with the next higher rate credit card and so on.
Transfer Debt to Better APR Credit Cards
If you can find a credit card with a better rate, donít hesitate and transfer the balance to the new card, this way youíll be
paying less in interests and whatever you pay will go mainly to reducing the capital. If you can grab hold of one of those 0%
introductory rate credit cards, you can benefit from the promotional period by transferring the balance to this card and paying as much as possible since the whole payment will go to reducing the principal. Beware though, that 0% APR cards tend to have a higher interest rate when the promotional period ends. If you wish to use this feature, try to repay all the balance before the promotional period is finished or have another card ready to transfer the balance again.
Avoid Paying Minimums and Missing Payments
Never pay the minimum unless you have no other choice, and make sure to pay more as soon as you can. Never, I repeat, NEVER miss a payment, this will soon get recorded in your credit report and ruin your ability to get finance in the future. This kind of things is what turns a healthy credit score into a bad credit score.
About the Author: Kate Ross is a professional consultant with fifteen years in the financial field helping people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams.
In one of her websites: http://www.speedybadcreditloans.com get more interesting articles and smart tips on diverse financial topics.