Credit card debt is not a topic most people like to talk about. Probably because it makes them face just how serious their credit card debt has become. Whether you have five-thousand dollars of credit card debt or five hundred, there are some "rules" to live by that can make your financial life easier.
1. The Credit Card Companies Are Not Your Friends
No matter how nice the customer service department may be, it's important to remember that the credit card companies are not your friends. The more credit card debt you have, the richer your creditors become. Would a friend profit from your debt? My point exactly.
Credit card companies will tempt you into more debt. Six months of free financing (expecting you do not pay the balance off in time) or credit card checks that you can use just like a personal check – all of these things are designed to lure you into spending more money and adding more of a balance to your credit card.
2. Loyalty Is Not For Credit Cards
While there is a lot to be said for loyalty, high-interest credit cards are not describing it. Yes, it is true that the longer your relationships with your creditors are the better your credit rating is. However, that does not mean you have to keep your balance with those high-interest credit cards. You just need to keep the accounts open.
If you're paying high interest on your credit card debt, do yourself a favor and transfer your balances to a low-interest credit card. Not only will you be paying less money in interest, but you should be able to get your credit card debt paid of faster.
3. Your Minimum Monthly Payments Will not Make It Go Away
Many people make the mistake of believing that if they are paying their minimum monthly payments on time, their managing their credit card debt just fine. This could not be further from the truth.
Your minimum monthly payments are not going to make your credit card debt go away any time soon. Instead of paying the minimum towards your credit card debt each month, pay as much as you possibly can and concentrate on getting that debt paid down faster.
4. Just Because Your Friends Jump Off a Bridge …
If you're one of the many people who accumulate thousands of dollars of credit card debt is okay because "everyone" is doing it, you may want to rethink your perspective. While the world around you may be happy to put themselves in financial ruin, you need to think about what's best for you and your family – not what's okay for everyone else.
Instead of thinking that it's okay to have thousands of dollars in credit card debt, consider credit card debt your enemy and avoid carrying any balances on your credit cards if at all possible.
Credit card debt is becoming more of a problem for millions of Americans each and every day. Do yourself a favor and keep these four credit card fundamentals in mind each time you use your credit cards and whenever you make your credit card payments. By managing your credit card debt wisely, you'll be able to rid yourself of it sooner rather than later.