Avoid credit card debt? With the right mood, plus a dose of determination and discipline is possible. No, do not throw it away yet, because its use has some good points in his favor. There are frequent flyer miles and cash dividend to win and to boost credit rating.
A dose of prevention is worth a pound of cure. While it is true that teaching young people all the money could be like a detour, it is more worthy to take them out of debt by then would have cost hundreds if not thousands of dollars. There are many resources that can help you do this.
It is no secret that despite winning the majority of this plastic money has to be used properly. To avoid credit card debt is easier to get out of it that is a very difficult task. Many have fallen into this financial hole and discovered how hard it is to get out. The following are some simple rules that help prevent credit card debt.
- Manage your finances by creating a budget and stick to it with monthly income and expenses and 5 to 10% is reserved for emergencies appeared in before using plastic money.
- Develop good spending habits, like not buy anything that you cannot pay in full later this month.
- You do not need more than one or two letters. Each comes with a different set of rules and will be quite a responsibility to remember all the penalties, interest rates, etc especially if you do not pay the full balance each month.
- Use the right card with no annual fee and low interest rate.
- Ascertain the rate of interest even on the street looking up in his statement that the credit card company can change its interest rate at any time without any apparent reason, even when you have no balance.
- Read the fine print though is so boring, because this can save you hundreds of dollars and a headache later.
- Treat as cash instead of plastic money to buy anything you can only pay in full at the end of the month.
- Do not use the credit card as a loan for what will be at a rate of interest.
- Little extra cost may surprise you to avoid them.
- Also avoid cash advances for those who incur the highest interest rate up to 20% and you continue to pay this high interest until you have paid all your purchases. There are also transaction fees and no grace period for it.
- It will also seek to sell some protection products do not really need, so just say no.
- Choose wisely for purchases to ensure that they are not building up a balance with higher interest or dividends flyer miles you'll receive. Check all rates and fees charged.
- Keep all receipts and check with the sentence. Report on all charges you do not recognize.
- Monitor your positions so you do not go more than 30-50% of the available limit, because if you miss that, your credit score can go down and interest rates could rise.
- Pay the full balance each month or will pay much money for them for the privilege. When this happens keep plastic money until you pay the balance.
- Paying on time all the accounts that have been delayed either of which could affect its credit card interest rate. Pay online so do not delay.