Credit Card Debt
Credit cards are nice to have, however they can
become monsters controlling your life. Banks are
using high credit card lines to get new customers
and then they encourage big balances.
Control your own limit.
You should not carry more than 20% of your gross
income in credit card debt. You should not carry
more than 30% in total debt.
You only need two or three credit cards. Having
an empty card set aside for an emergency is a
good idea. Having several months’ salary
in a savings account is better.
How to stay on top of your credit card:
- Pay the balance off every month
Pay when the statement arrives, saves on finance
- If you can’t pay in full, pay more
than the minimum. Minimum balance amounts are
designed to make you pay the very most in finance
charges. Paying even $25 extra makes a big difference.
Pay twice a month, easier on the budget but
still reduces your finance charges by lowering
your daily balance.
Request a lower interest rate.
If you find yourself sinking call the credit
card company and ask for some assistance. They
are generally wiling since they want their money
back. If you get a customer service agent who
won’t help you, call again and speak to
another agent, until you find one who will help.