Cut Up Credit Card And Cut Down Credit Card Debt
Thursday, May 29th, 2008 Subscribe To Our Feed
It seems that most people have at least one, if not more credit cards these days and the temptation to use them on even the smallest of purchases is greater than ever. First of all, it’s really more convenient to carry a small piece of plastic around than coins and notes. But also, stores offer al sorts of incentives to use a card over money like cash back on purchases, flyer points or some other scheme. So it is very easy to let your credit card usage get out of control even before the lure of easy credit gets you dreaming of that new pair of shoes or the latest xbox 360 game. This article will cover how to discipline yourself when it comes to credit card spending and how this can save you from getting into a whole lot of debt. You can cut up credit card and cut down your credit card debt.
Did you know that some credit cards carry an interest rate as high as twenty-nine percent? You wouldn’t want an interest rate that large on your home or car, so why settle for it on your credit cards? For those credit card companies that offer a super low interest rate at the beginning, if you miss one payment, the interest rate jumps up to around a whopping eighteen percent or more. Read the fine print.
Credit cards are a way of establishing credit. Purchasing items and making payments on time lets potential credit lenders know that you are an acceptable risk for them. Good credit helps people to qualify for low interest loans on houses, cars, and furniture.
But that good credit standing can quickly change if you begin to charge more on those credit cards than you can possibly pay back. Interest is tacked on each month that the credit card carries a balance. It may be only a few dollars now, but let the balance linger for a few months and you will see the difference.
Using credit cards for intangible things encourages debt. It is convenient to purchase groceries, gas, pedicures, and other services on a credit card, but in a few weeks there will be nothing to show for it. When the bill comes, the food will have been eaten and the gas gone from the tank.
There’s no need to get rid of all of the credit cards. Keeping one card is sensible for emergencies. We’ve all had the odd bit of car trouble now and then. Or, even worse, something happens to the heating unit or something else in the house. A credit card provides emergency money for the types of things that are unexpected.
What about the other cards? Cut them up! As soon as the balance reaches zero, call the credit card company and cancel them. Be aware that the representative will try to entice you to stick around. They may even offer to up the credit limit. It’s a trap, so don’t fall for it.
Get rid of your debt for good. Keep one credit card for emergencies and let the rest go. Try to use cash as much as possible to make purchases as this will prevent getting into debt. If you do use your credit card for larger purchases then make sure that it fits into your budget or that you can pay off this credit within the interest free period of the card (generally 55 days or sometimes 30 days).
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