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How You Can Avoid Consumer Credit Card Problems

Nick Makaryk
Aug 8, 2008
We all know one thing for certain - there's no shortage of credit card offers out there. They bombard us from seemingly every direction: on the internet, through the mail and everywhere else! Maintaining your credit can be a difficult thing; and getting the one which you really want can be harder still.

Shops are always very willing to give you a discount to induce you to sign up for a card and of course, an extra 20% off is tempting. However, after this one time discount you find yourself faced with yet another monthly bill for this new one.

Really though, the problem with them is that when people use them, they don't think of it as spending money. There's no less cash in your wallet or purse afterwards; making it all too easy to just produce the plastic in any situation, which can lead to overspending.

They were not created for people who are on a tight budget - each month you must make a payment. Even if you make the minimum payment and avoid late fees, it can still take decades to pay off your balance!

Think about how long it would take to pay off your debt in full; that is, if you never charge another cent to it. You should never apply for a new card to pay off an old one, except in the case that you can take advantage of an introductory interest-free period which is long enough for you to fully repay your outstanding balance.

Almost everywhere you go, the major cards will be accepted, so there is really no need to have an entire wallet full of different ones. Keep the number small in your wallet to two at most. More than this can make it all too easy to lose track of what you have spent and saves you the headache of managing several different bills every monthly bills.

Another temptation held out by them which you should avoid is cash advances. These are certainly convenient but come with a high interest rate which is computed daily by the companies - you can easily end up owing a lot more than you expected this way.

If you tend to succumb to this temptation at the ATM often, you will find your debt growing rapidly; the interest rate in cash advances can be as much as 24% Remember to use cash advances only in genuine emergencies. Try instead to look for a no-frills card one which has no annual fee, a low APR and no rewards programs.

Using them wisely can help you to establish good credit - but only if you are careful and avoid the pitfalls of temptation. Make your payments on time and keep your credit rating strong; you'll pat yourself on the back for this when the time comes to make a large purchase such as a car.

As much as a lot of people love to shop, it is definitely a luxury and not a need to do so. Cash advances and paying your bill late are equally so. All of these things will affect your rating, so spend only what you can repay in full each month if you plan to use them to build your credit rating.
About the Author
Nick Makaryk is an Internet Publisher, Copywriter, and Founder of Best Credit Cards A Free consumer Credit Card Comparison site helps consumer minded individuals find the perfect credit card while avoiding high interest rates, charges, and no fees. Compare all Low Interest Credit Cards from accredited card issuers Visa, Master Cards, Discover, American Express.
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