Applying for your first ever credit card can be all exciting. But the thrill fades away when you suddenly realize that your debt is piling up. You splurge all that money, now its pay back time. The delight of cashless purchase here and there can be addictive. After months of mismanaged finances, you are left with a high bill that you have no means of paying. You don’t want the nightmare of credit card debt to happen to you, do you? Here are tips that you can use to turn your back to possible credit card debts.
*Always take note of your credit card spending. You may think as if the things that you are purchasing are free since you don’t have to pay for upfront cash. But we are not in a fantasy land and all things in the world come with a price tag. Limit your credit card usage and keep all the receipts to keep you on track.
*Pay your credit card bills on their due date. This is the most logical way to avoid debts. Late fees are applicable when you pay your bill even after the day of the due date.
*Keep only one credit card if possible. Well, it is possible. Save the card with most efficient service, low interest rate and with all the benefits that you need. You can avoid debt by carrying cash at hand and using this one card just for emergency purposes.
*Pay off you credit card debt immediately. In worst case scenarios, if and when you are in the deep mud of credit card debt, you have an option to sell your personal belongings that have a high value. Don’t sell everything though; just those that you bought to spoil yourself like expensive entertainment system and the like.
*Call your credit card company and negotiate on annual fees. Explain your situation and about your fnancial difficulties as of the moment. Most credit card companies can lower down their annual charges; some may completely drop the fees. Tell them that without the reduce charges you might need to close your credit card account. This usually gets them attentive and pushes them to pull some strings to help you. Though you might not want to try this particular advice to credit cards that are in partnership with hotel and airlines, they are known to be strict and wouldn’t lower their annual fees.
*If all the effort you exerted to pay off your credit card debt has been in vain, then it is time to call professional help. Credit card debt consolidators can readily advice you on how you can pay off your debts in a more effective and systematic way. They would consolidate all your debts, compute the total amount at a minimum and then send you a bill every month. They will then allocate the over- all balance you need to pay to the different creditors you have. The debt consolidation agencies do charge a monthly service fee but you can find other non-profit debt consolidators too. Just a caution, be wary of low- class debt consolidator that promises an instant and immediate fix on your credit card debts. You might end up paying more than your initial debt.
The key to avoiding debt is to have self control. Limit your spending. Keep track of the things you purchase on your credit cards. When you have the money, pay off your debts immediately. Come to think of it, credit cards are initially created so that you can use them to manage you finances and clearly not the other way around.
Christopher M. Luck has an extensive background in dealing exclusively with major credit card companies and is now offering his free professional debt secrets to the public. If you are at all interested in Christopher's professional credit card debt advice, tips, or secrets, you can visit his finance blog.
