Find Solutions to Help You Get Out of Debt and Avoid Bankruptcy

Smart Credit Card Use

There are things you can do to insure that your credit remains strong and your credit card debt stays manageable. The current times require that we remain financially responsible. With no one being completely sure about the security of their income, it is important that our credit card debt stays in check. I'm going to discuss a few options and tips that we have developed over the years that will help you stay on path and financially healthy.

When it comes to credit cards, know everything about the ones that you have. You need to keep track of interest rates, fees, due dates, current credit card debt, etc. If you have one with a ridiculous rate, call them up and ask them to lower it. If they don't lower the rate, get rid of it. If there is a balance on the card, pay it off by rolling the balance on to a lower rate card. If you don't have another lower rate card, apply for one.

When it comes to making purchases, limit your credit card to emergencies. Carry your debit (check) card around and use that. It may be wise to leave your credit cards at home. It's been shown that just having a credit card on-hand when out and about enables people to overspend. If you do use your credit card for something, make sure the purchase is needed instead of merely wanted. If you do end up purchasing it, make sure you avoid purchases you can't afford. That is the number one reason people acquire high amounts of credit card debt; spending money you don't have.

When you get a bill from the credit card company, whether via email or in the mail, pay it on time. If you don't, you will get charged ridiculous fees and they'll probably jack up your rate. It's better to just pay it every month, the whole balance if possible.

If you're having troubles making your minimum payments and have around $10,000 or more in credit card debt, consider getting debt relief from a certified debt settlement company. If you have less than $10,000 you should consider credit counseling.

Maintain a budget based on your income and stick to it. Position yourself so that you are not living paycheck to paycheck. Make sure to set aside money for entertainment; it's important when creating a budget to include some fun money, just leave the credit card at home so you aren't tempted to use it.

Following these simple rules will help you remain financially secure and keep your credit card debt low. It can be hard in these trying times to not pull out the credit card (society and the credit card companies have been telling us it's ok to overspend), but it's important to keep your finances in check. Keep your credit card use limited to emergencies and you should be fine. Good luck.

February 1st, 2009

  1. Types of unsecured debt include: credit cards, personal loans, gas cards, department store cards, apartment lease judgements, medical bills, etc. Secured debt such as your home or car cannot be included in the program. However, if your car is repossessed or you foreclose on your home, our partners may be able to resolve what you still owe on those loans.
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