Credit cards are not destructive, they do not look for you. In fact, they can make you – and your credit score – a lot of good. If so, why are so many people stuck in debt? By making reckless decisions about their finances, that's how it is.
If you're new to having a plastic friend, here are some tips to keep in mind:
1. Be responsible.
– Having a credit card, is having some buying power at your fingertips, as symbolized by this little plastic card. As we all know in comics and Spiderman movies, great responsibility carries with it great responsibilities. Make sure you have things you need or in case of emergency. Use as much as possible money or debit cards. It would be a better idea if you save for items that are beyond your means, or if you give up the idea of buying it completely.
2. This is not free money.
– Having a credit card is not an excuse to spend money freely. When you buy something by charging your card, you only borrow money from the card company. Do not forget that you still have to pay for it at the end of the month. So be sure to spend less than you can afford to pay at the end of the month.
3. Pay the total amount on time, each time.
– One of the ways that credit card companies use is to charge you interest. They also charge you an additional fee for late fees, financial charges and other penalties for one thing or another. Do not give them the opportunity to make more money with you. Instead, make a habit of paying your credit card balance in full and on an ad hoc basis every month, which will be an excellent score in your credit history.
But what if you're already heavily indebted for credit card debt and you're running fast? One of the first things to do is to discuss your current situation with your credit card provider. If you are currently going through a difficult time, such as a termination or illness, you can ask your credit card provider if you can take advantage of any such program, in which it allows you to stop the payment for at least six months to a year. Since you probably have other financial obligations that overburden your base, you can also consult a credit counselor and get advice on managing your financial problems. Generally, debt management is available to many distressed debtors, where your representative can negotiate the terms of payment with your creditors. In some cases, a debt consolidation loan can be advantageous for you because it means getting a big loan to pay off all your debts.
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