So you just got your first credit card and now you finally can buy those gadgets and wizzbangs you always wanted. It's a great way to build credit history and the card's free too. Wow! Sounds like a great deal, right?Well, sort of. I think there is one guideline to follow when using your credit cards. Make sure you can pay off the full balance at each billing cycle! Don't just pay the minimum. Never run a balance into the next billing cycle. If you don't have any income, don't use your credit card. Free credit cards charge crazy amounts of interest that adds up quickly.
If you're already in credit card trouble, then you need a plan to get that back in control. There are 3 ways to help reduce debt and none of them are easy. Best to stay out of trouble in the first place. Here are the steps:
- consolidate your debts - move all your debts to one account with lower interest - maybe a personal creditor (mom and dad?) or a line of credit
- increase income - get a job or get a raise
- reduce spending - budget your spending, slash your luxuries, take the bus, ride the bike and please cancel the credit cards.
Posts
1 comment:
It's quite easy to charge this and that to your credit cards without realizing how much you are really spending.
These are good simple tips to follow!
Luckily I always pay off my full balance every month and not spend money I don't have^^
Post a Comment