Dept Relief Section 2
Credit Card Debt:
Ask yourself these 10 questions about your credit card debt.
1) Am I charging more this month than the last without any major purchases such as a new TV.
2) Is my income lower and my credit card bills more than last month?
3) Do I only make minimum payments on my card.
4) Do I borrow from one credit card to pay for another.
5) Do I use 3 or more credits to make purchases for a month.
6) Do I charge the cost of consumables such as food, gas or entertainment without paying the entire amount every month.
7) Will I continue to pay credit card fees.
8) Do I get a new credit card when I have another max?
9) Am I worried about the interest rate I am paying?
10) Am I lying or covering up the use of credit cards to my other important people?
If you answered yes to one of these questions, you need to master the cards. If you answered yes to more than 3 questions, it is time to look seriously at getting control.
Expending with plastic is easy, sometimes too easy. It doesn’t feel like you are parting with your money. This means the temptation is to spend without thinking about the consequences until you open the bill.
Start by only using 1 credit card to make a purchase. Use the one with the lowest interest rate and the best payment terms. Only make payments to others. Don’t carry extra cards with you. If you don’t have a card, you can’t use it. Place the cards that you don’t use in a safe place. Pay as much as possible on each card that you don’t use and make more than the minimum payment you use. After the balance is paid, cancel the account.
Get rid of the rolling account in the department or home supply store. These cards usually charge a maximum interest rate.
The credit card business is very competitive, and you can negotiate lower rates. You can even get a card with an introductory rate of 0% for 6 months to 1 year. If this is the case, get a new card, but transfer as many high interest card balances as possible to a new card. Now, here’s the hard part. You MUST close the higher interest account that you are transferring and destroy the card. If you don’t do this, you will now back out again. JUST DO IT!
A note of advice is not to close the account until you have paid it off. Some credit card companies will charge you the maximum interest rate if you close your account with a balance.
Start paying for consumables such as food and entertainment with cash or a debit card. If you don’t have money, don’t buy it.
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