Have you been wishing you could just cut up your credit cards? A lot of people have wished that very thing during the recent recession. You’re not alone in having used your credit card to take up the slack between what you earn and what it costs to live these days. If you have stress and anxiety about your growing credit card debt, then you need to read the following six points of information.
1. Keep paying the credit cards. Missing a payment on one account can cause the others to raise their interest rate also, even if you’ve paid them promptly for years. Sounds unfair, doesn’t it? It’s called universal default and it’s very real. A missed payment can stay on your credit report for years.
2. To make matters worse, if you miss a payment to one card all of your other cards may raise their interest rate in what they call a “universal default”. So even if you’ve paid on a card religiously, you may get hit with an increase for missing a payment on an unrelated card.
3. Credit cards aren’t inherently bad. They have their uses and they are an essential part of commerce today. But you should only use them when absolutely needed because too many maxed out credit cards can quickly lower your credit score making you have to pay higher interest rates.
4. Don’t wait until you’re really over your head before asking for help. There are many companies out there whose focus is helping consumers with credit card debt. Listen to what they say and be sure that their plan is modified to suit your particular situation.
5. Don’t wait until you’re really over your head to take action to reduce this debt. Use an online interest calculator to figure your payoff date.
6. Once you have debt under control you will need to make a commitment to keep it that way. Review your expenses and how they relate to your income. Then make plans to save for those things that pop up when you aren’t prepared and which make you reach for the credit card.
Take responsibility for your money and what you spend it on. If you’ve let yourself get in over your head then ask for help and we will find someone to lead you through the maze that is the repayment of credit card debt. Credit card balances grow when they’re not being observed so be vigilant about keeping them in check and serving you instead of being a drain on your money and your emotions. It’s your money, let’s use it to benefit ourselves and our families, not to hang over our heads like a black cloud.
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