Credit card debt story: Common credit card Pitfalls [Part 1]

The next step toward taking charge of your credit card is to know the pitfalls and how to avoid them. These are the classic pitfalls:

1. Having too many credit cards
2. Think your interest rate is set in stone
3. Using your credit card to withdraw money from an ATM, or use of these controls that are free in the mail
4. Being a victim of the new card "bait and switch" you think you get a card with a low rate, but the card that arrives in the mail has a much higher rate
5. Being too confident

Let's talk about each of these traps and how to avoid them in the next article.

Too many credit cards
We like to draw too many credit cards from the collection of credit card, or 3C syndrome. Yes, this includes credit cards and traditional cards retail store! The problem with the 3C syndrome is twofold. First, with too many cards, you have until the end of May in total spending more than you think. Secondly, with so many bills, you increase the chances of not paying one time. Pay overdue financial harm your reputation, late fees, triggering expensive and often lead to higher rates of interest on arrears. Like eating chocolate, when it is the number of credit cards to have, moderation is best.

If you have too many credit cards today, you are not alone. Here's your plan of action to reduce plastic battery:

• If you are able to repay your entire balance at the end of each month, take the two cards (at most three, if you need to work costs), which are free of charge and / or ' have the best benefits.
• If you go to a balance on your card (even for a few months), forget the benefits. You must identify your two existing maps with the lowest interest rates.
• Pull out the scissors and the remaining cards as you have photos of your ex-boyfriend. You are cutting your cards to avoid charging them. However, until you repay your entire balance (s) and formally close the account (s), you must continue to make monthly payments.
• Once you have a zero balance on the cards, it is time to officially close.

As for cards retail, frankly, we just neither're or fans. They generally have interest rates very high. In addition, as you will learn in the next chapter, the application of these cards can damage your financial reputation. May be if he tried to open one to get 10 percent off your next purchase, we invite you to take a pass. We believe that the potential decline more than offset the time that the price of a break. There is a cat because retailers want you to open one of their store cards, and it does not make life easier for you.

Please continue reading part 2