By Jonathan Boral on March 11, 2010
.jpg.aspx) When obtaining a credit card, the most important aspect is to be aware of your responsibilities. And while it may appear simpler to live without a credit card, it simply cannot be done.
Credit cards are used to start a credit score, necessary in obtaining loans for homes, cars, and other high-price items. When applying for a credit card, thoroughly read the contract which you are signing, as some banks may place clauses that grant them complete control over your interest rate. Also, stay away from credit cards with annual fees; there are far more card issuers that do not charge these unnecessary fees.
Subsequently, watch your assets! This is the quickest way to fall into credit card debt. Ask yourself if the items you are purchasing are necessities or luxuries. If it helps, record each transaction so that you know what you are charging, and it will help keep you knowledgeable about what amount you will be charged at the end of the month. These simple tricks will help in keeping credit card debt low.
And while it may be easier to try your hardest to stay away from debt, for most, it is something that cannot be avoided. There will be times when bills pile up, and each charge on our card will take a while to eliminate. First and foremost, do not overreact! Debt is not always a bad thing, it teaches us to stay smart with our money, and keeps many grounded in today’s uneasy financial market.
When looking at continually increasing debt, be sure to tackle the largest bills first. By paying off those big bills first, those bills are likely to have less interest tacked on, saving you huge sums of money over the years.
If the debt becomes too excessive, it may be time to leave those credit cards at home. If you don’t have the cash, don’t spend! But, it is always smart to keep those cards around in case of emergencies. And if you believe you are at the bottom of the barrel, communication is key. Speak with your issuer about possibly lowering your interest rate.
In the end, it is important to stay knowledgeable and positive. Set goals for yourself and stay on course. Like Jill from Bravo’s The Real Housewives said, never spend money that you know you don’t have.
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