Consumer debt – the power of plastic card

Consumer debt is occurred by credit card, especially woman shopping. Not only you but most of woman have credit card debt. I know way to prevent credit card debt for woman. Sometimes you need to catch the trend such latest shoes, music, or meal rather than staying within a strict budget.

But to do so cause consumer debt that is truly trouble. The interest you pay on your credit card debt is not tax deductible and interest top up also high. Bad Credit card debt can affect your potential to afford a mortgage loans. Someone called credit card debt as financial cancer!

For now, here are a few tips to manage your credit card debt. If you have more than one plastic credit card, gather up all the bills. And review it! I make a sample list below.

Item Debt balance Interest rate
Clothing store $1,500 20%
MasterCard $1,750 15%
Dad $500 0%
Visa $2,100 8.9%


Congratulate yourself for exposing the truth about you and your credit card habits. You have two options. Make a plan to pay your debt but pay highest rate first and make minimum payment for the others. When your highest rate credit card debt is zero, you pay the second, the third, and so on. The second option, If you have good credit, consolidate all your credit card debt onto the one card with the lowest interest rate. Now, I observe that lowest rate in the market is 5%. You can check the website www.cardweb.com, or call 301-631-9100 for find the information of each credit card offers. Finally, don’t forget to check back your credit report, as it will be improving as you begin to pay off your debt on each credit card.

And now, if you can eliminate your credit card debt. Your chance of getting a great deal on a first- time home is became truly. But it subject to your credit history too. The credit history is also reflected by amount of credit card debt. The more amounts, the less credit score.

If you are feeling information overload, keep in mind that most people have specific challenges with their credit history in one form or another. This process isn’t about beating yourself up; this is about getting the facts and finding a way to make them work for you when it comes to gaining access to buying your first home. Even if you feel you are not totally ready to shop for a first home today, apply for a copy of your credit report and make a plan to review it thoroughly with a mortgage lender. Empower yourself with the facts today so that you may plan for your mortgage loan tomorrow.