Credit Card Study

General
What are Credit Cards
Advantages of Credit Cards
Applying for a Credit Card
Children and Credit Cards
Credit Card Terms and Fees
Credit Cards - The Right Tool for Merchants
Credit Cards as a Credit Instrument
Credit Cards Codes and Numbers
How Many Credit Cards are Enough
How to Select the Right Credit Card
Interest Rates for Credit Cards
Online Credit Card Usage
Risks of Credit Cards
Using Credit Card Overseas
Where to Use a Credit Card
Zero Rate Credit Card or Not

Major Credit Card Issuers
Wamu credit cards
American Express Credit Cards
Capital One Credit Cards
Chase Credit Cards
Citi Credit Cards
Diners Club Credit Cards
Discover Credit Cards
Mastercard Credit Cards
Visa Credit Cards

Credit Cards and Debt
Avoiding Credit Card Debt
Bad Credit and Credit Cards
Credit card debt consolidation
Credit Card After Bankruptcy
Credit Cards and Credit History
Getting Out of Credit Card Debt
Filing For Bankruptcy
If a Credit Card Issuer Sues You
The Optimal Credit Card Balance
Credit Card Debt Refinance

Credit Cards and Fraud
Avoiding Credit Card Fraud
Credit Card Fraud Protection for Merchants
Famous Credit Card Frauds
Famous Credit Card Law Suits
How Credit Card Issuers Cheat
Merchant Credit Card Fraud
Protect Your Card
What to Do in Case of Identity Theft
How Consumers Cheat

Types of Credit Cards
Business Credit Cards
Debit Cards vs. Credit Cards
Low Interest Credit Cards
Rewards Credit Cards
Secured Credit Cards
Student Credit Cards
Types of Credit Cards
Unsecured Credit Cards
Zero Credit Cards

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Disclaimer
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Avoiding Credit Card Debt

It is hardly much of a comfort that bad credit card debt is one the most common debts but these are the facts. And what is worse is that, unlike credit card fraud, which constitutes a crime against you, with credit card debt you are also the victim but this time it is completely your fault. Yes, as far as credit card debt is concerned, you are your worst enemy! And you can even destroy yourself, if you don't take the right measures!

Avoiding credit card debt is not as difficult as one might think. Anyway, credit cards are not meant to be a financial disaster. And they aren't if you use them wisely. Although getting out of credit card debt is not impossible, it is much better if you avoid getting into debt. So, the basic rule is: Don't spend more than you earn. And pay your balance on time. It is that simple and the same time that difficult. But if you follow several simple rules, like the ones listed below, chances are that you will not get into credit card debt:

  • Limit your impulse purchases. Impulse purchases are a real devil. You see something that you can't live without (though in fact you have been living without it for years) and you will die if you don't have it. If the object of your dreams is expensive, then it is more difficult to make your mind and take it but if it is not, you don't even think for a second but purchase it instantly. For instance, a new CD that costs $20 is really cheap. Why not get it? Food deliveries are very convenient. Why cook when you can order and get a meal delivered to your door? It is not expensive. Yes, none of these are expensive but when you make a couple of such small purchases a day, you can easily exceed the $100 mark. And if you do it a couple of times each mount, you could spend $500 or more on all those small unplanned joys in life.

  • Pay your balance in full when it is due. Let's continue the previous example. If you earn $2,000 a month and your rent is $1,000, then $500 on impulse purchases are half of your monthly allowance. If you didn't have a credit card, you wouldn't have even dreamed about it. But the fact that you have a credit card actually does not change things much because if you don't pay these $500 in full on the due date, which generally is only days or weeks away, the balance is taken to the next month. So, you still have to pay it but this time with an interest and it is already $510, for example. If you leave it for one more month, it gets to, let's say $521. If you leave it for a year, it can get to $600. Partial payments, like $40-50 a month don't help much because you are actually still paying enough interest, so it is really best to pay your balance in full.

  • Don't go over the limit. Late payments are not the only type of transaction that can lead you to payment of higher interest rates. Going over the limit might also penalized by higher interest rates, so it is strongly recommended that you do it only if you absolutely have to. And of course – try to repay the money you borrowed as soon as possible, before high interest rates start to pile up.

  • Check your statements. You can regard it as too much bureaucracy but carefully reading your statements for any suspicious activity is the only way you can protect yourself from credit card fraud and debt. If you don't read your statements and there are errors in them, you end up paying for expenditures you have not made. Well, if your expenditures are not enough, you can pay the fraudsters' as well but isn't it much better to pay only what you owe? So, take a look at your statements – this is not a waste of time!

Of course, there are many other ways to protect your credit card and avoid credit card debt but more or less they revolve around the ones we have already mentioned. And basically, there is nothing new under the Sun – spend less than you earn and beware of false transactions. If you keep to these simple rules, you will have peace of mind!