May 15, 2008

How to control your credit card

Getting into the credit card trap is so easy for some people to fall into these days, with so much credit being offered sometimes it is just too hard for some people to say no, even though they know that they could be heading into trouble.

Here are some tips to help avoid the trap:

Restrict yourself to one or two credit cards at most
Don’t accept offers from every credit card company
Don’t accept offers from your existing credit card providers to increase your limit
Be very wary of using one credit card to pay another
Consider refinancing and consolidating your debts into one
Be aware that credit card debt has no expiry date
Bankruptcy is a possibility; seek assistance from a financial advisor

For some people it is hard to say no, especially when there is the opportunity to buy now and pay later, but the cost of this is very rarely looked into at the time.

Source [Cubble]