Credit Cards - 5 New Year's Resolutions

[jeffrey]

With a new Associated Press survey indicating that 50% of all Americans worry about the money they owe and 40% of those with credit cards planning to use their credit cards to help pay for their holiday spending, the red this holiday season most likely will remain well past the New Year in the wallets of many people. Just because you're currently in credit card debt doesn't mean that you have to stay there. Vow to get out of credit card debt by adopting the following 5 credit card New Year resolutions.

<b>Pay More Than The Minimum</b>: If you are carrying a balance on your credit card and are only paying the minimum, it's time to break that habit. Even if you only put an extra $10 or so to the payment, it will save you hundreds of dollars in interest charges.

<b>Call Your Credit Card Company</b>: If you're carrying a balance on your credit card and your credit card interest rate is in double digits, call your credit card company and tell them you want it lowered. It costs nothing to call and if you are a good customer, they are more than likely to do so. Just say that you received an offer to transfer the balance to a competing card at a better interest rate. Then say you like your current card, but if they can't lower your interest rate, you'll have to think about switching credit card companies. If they won't lower your rate, take your business elsewhere.

<b>Freeze That Credit Card</b>: If you currently have credit card debt that you can't completely pay off, stop using your credit card until you can. Put it someplace where you don't have easy access to it to avoid using it on impulse. If you don't have confidence that you'll keep your hands off of it in the back of your desk drawer, put it in a plastic bottle of water and freeze it. It will be there if there is a true emergency, but won't allow you to use it without making an effort to get at it.

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<b>Raid Your Savings</b>: If you're paying 18% in interest on your outstanding credit card balances and earning 2.5% or less on your savings, you're losing money each month. Paying off your outstanding credit card balances is like earning 18% on that money (or whatever your credit card interest rate is) since you will be saving this amount in interest by paying off the credit card balance early.

<b>Change Your Habits</b>: The reason that you have credit card debt is not the fault of the credit card. The reason that you have credit card debt is because of your current spending habits. While credit cards can make spending easier, they aren't the root cause of the problem. Take a long hard look at your current spending habits and what you can change so that you no longer spend more than you make. By making changes to your spending habits you'll put in the foundation so that you will no longer go into credit card debt when the holidays come around.

By adopting these five credit card New Year resolutions, you'll place yourself in a position that come the end of 2005, the only red you'll be seeing is the suit and hat that Santa is wearing.

[itsmejan]

Re: Credit Cards - 5 New Year's Resolutions

I have been using step #1 for almost a year now. I pay ten dollars over on all but one card,on this one I pays whatever the the minumum plus whatever the previous months finance charges are. It is unbelievable how much this is helping bring down the balance.
when this card is paid off I intend to do the same on another one. Belive me we are not rich ,we live on my husbands disability and alot of our CC debt is because we spent whatever cash we did have and had to charge alot of meds on CC's. It can and will be done ,one card at a time. JAN

[xboxundone]

Re: Credit Cards - 5 New Year's Resolutions

I am glad to say i have only carried a balance once in my life and it was planned..... I would say credit cards are great for emergencies (if you have money in bank to pay it off at end of month) and for rewards if you pay them off at the end of the month.

[steve22]

Hmmmm Good......... Nice 5 New Year's Resolutions on credit card... I tell you we will be so so so happy when we purchased something through credit card and finally at the time when we got the bill we will be vanished due to interest rate..... Uffffff.

[irs]

Using of credit cards for New Year or during special occassion is a good idea if you know the limitation and the proper use of it without spending too much.
The reason that you have credit card debt is not the fault of the credit card "but the credit card user". The reason that you have credit card debt is because of your current spending habits "that spending too much", luxury like clothes, jewelry than the basic needs or everyday neccessity like food, water, and gas". While credit cards can make spending easier "if they know the limitation and proper use of credit cards", they aren't the root cause of the problem.

[Ima saver]

I pay mine off in full every month. I only use it to get the reward money back. I have made about $600 back so far this year.

[Mitch]

credit card industry

These credit card companies are almost a scam with the preditorial lending going on these days. They can basically raise your rates for no reason at all. All creditors eventually will settle with you if you are having a hard time keeping up. Don't let them scare you into taking food off your table. Their unsecured and there is no debtors prison.. There are only a few companies that actually structure proper programs to help resolve the debt with you that do not escrow your money??

[Mitch]

These credit card companies are almost a scam with the preditorial lending going on these days. They can basically raise your rates for no reason at all. All creditors eventually will settle with you if you are having a hard time keeping up. Don't let them scare you into taking food off your table. Their unsecured and there is no debtors prison.. There are only a few companies that actually structure proper programs to help resolve the debt with you that do not escrow your money??

[Mitch]

Credit Card Scam

These credit card companies are almost a scam with the preditorial lending going on these days. They can basically raise your rates for no reason at all. All creditors eventually will settle with you if you are having a hard time keeping up. Don't let them scare you into taking food off your table. Their unsecured and there is no debtors prison.. There are only a few companies that actually structure proper programs to help resolve the debt with you that do not escrow your money??

[Johansen8]

I pay mine off in full every month. I only use it to get the reward money back. I have made about $600 back so far this year.

I do the same.

[MaskedMarvel]

I do the same.

Me too! It's a great way to take advantage of the credit card instead of the credit card taking advantage of you.

[louissusman]

Pay And Take The Reward Money Only Rule For Take Advantages.
Other Wise You Gone On Debt

[mtsen]

indeed, 90% of us get on debt, then the rest rip of extra benefits ... and credit card companies are happy too .... what can I say ? Human are human.