Responsible use of a credit card does not really exist unless you are paying it off in full every month. Credit card debt reduction is an all too common requirement and is becoming a really big problem on a world wide scale. There is not a positive side to the use of a credit card. Sooner or later you see something that you would like and the idea of paying it off over 3 months perhaps sets in. Then you need to use it because some ‘unforeseen’ debt crops up and before you know it, there are a few thousand dollars on it.
Using cash to pay for things feels better. There is nothing worse than seeing that credit card statement come in and the interest on it alone would have paid for your new tires this month or got new school uniforms for your children. The best option if want the convenience of ordering things over the telephone, is to use a debit card. You still get the ability to pay for mail order items, or over the internet, but it acts like cash, if there is no money in your account, it will not transact.
Personal finances are really mostly to do with your behavior. There are bad spending habits and good spending habits and only you can make the positive changes that will get you out of debt.
If at all possible and you have teenagers, never encourage them to have a credit card. It all starts in adolescence. Teenagers these days think that once they have a driver’s license, a credit card and a mobile phone that they become adults.
Banks use a marketing strategy often referred to as Brand Loyalty. The first bank to offer a credit card to a teenager, certifying their adulthood, normally gets to keep that person as a customer as teenagers are very loyal to the bank that issued their very first credit card.
So the very first thing to begin your credit card debt reduction is to freeze your credit card in a plastic box in the freezer so you cannot use it freely. The second thing to do is to pay off that debt. You will be so much happier when you know that the money you earn is for you, and not to pay off your credit card debt.
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Frequently Asked Questions
Can a credit card debt be charged to your personal ...
By: treyes724 | 03-07-2008
can a credit card debt be charged to your personal bank account without your consent? Is that legal?
Grants
By: mek72 | 19-04-2008
yes i would like more info on how i can get grants for myself. i do see that you guys have alot of options for grants,but when im trying to get more info you have to submit a credit card to get more info. Do you have a 1-800 number so i can talk to a live person there are alot of scams going on an i dont want to take part in any im already in debt dont need any more. so i need some info on how i can qualify for grants please i have tried alot of companys but i have not been able to get much help please help me.
Need help from credit gurus
By: snoopy52 | 19-04-2008
Here is one for the credit gurus out there. I'm in the middle of a break up from an 11 year relationship. We were not married, but our finances were more intertwined than most married people I know. Ok, here is the senario. We have aprox $15k in credit card debt and we own a house together. We spoke to a realtor and we owe $275 on the house and in today's market, we can only get $250k to $255k at most. After the standard 6% fees, we are upside down on the house by about $35k. Put all the debt together, we are at $50k. We are looking at two choices here. Should we just let the house fall into foreclosure and not pay that house payment and use that money to pay down the other debt, or should we just do bankruptcy and have the courts liquidate everything? Which is easier for our credit history to recover from? By the way, this is an ugly break up so renting the house till the market comes back around is not an option. The only other option that was considered was to borrow $15 to $20k each to make up the difference. Neither one of us wants to spend the next 6 to 8 years to pay back a loan for a house we don't get to live in anymore.
Can credit card debt eventually take your house away?
By: Joymoon | 07-04-2008
can credit card debt eventually bought by lawyers get a motion going to force the sale of your house?? I got a letter from a lawyer about my debt and do not know what it is about. The original debt was about 15, now 21 grand.
Loans and credit card debt
By: womannotagirl | 05-04-2008
If you have a lot of credit card debt already, will banks or credit unions still give you a personal loan? Can you get a reasonable interest rate?
I have over 30,000 dollars in credit cards, but I ...
By: Richyrey | 02-03-2008
i have over 30,000 dollars in credit cards, but I'm thinking on moving away to France where my wife was born. what is going to happen if I forget about my bills and stop making the payments on my credit cards. does that make me a criminal or is it penalize by the law?
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