Credit Card Advice To Avoid Excessive Debt

June 28, 2011 by  Filed under: Credit 

Is your credit card maxed out? Are you in need of credit card advice? Tens of thousands of Americans are drowning in credit card debt. But you don’t need to be one of them. Some important information has surfaced for credit card holders who are in desperate need of some good credit card advice. The debt on your card isn’t totally your fault you know? Since the almost collapse of the economy in 2007, money has been tight, and bills are usually last to get taken care of. Here’s some credit card advice to help you keep your debt at a minimum and your wallet fuller.

Cut your cards up! Yes, I said it! Once you cut your cards up into little pieces, just pay off the remaining charges, overcharges, and balances. When you take the step of completely ridding yourself of your own debt burden, you will feel free from all tethers. Once the cards are paid off (in due time), you will see your credit score improve considerably. Credit companies won’t tell you this, but it can be a very effective way of improving your financial position. Then once your credit score has improved you can then apply for a credit card with much lower interest rates than you were incurring previously.

If cutting up your cards isn’t an option, you might want to try putting them somewhere where you will forget about them, and hopefully use them less. Or you can give them to a trusted friend of family member. They should keep your card safe and prevent you from using them for unnecessary purchases. Often, card holders are their own worst enemies, and they don’t know when to say no.

Never under any circumstance should you cancel your cards. When you cancel your cards, you usually pay a double or triple disconnection fee. This disconnection fee could amount to thousands of dollars that you have to pay when it’s all said and done. These fees, if not paid off in a timely fashion, can hurt your credit score. Once the damage is done, it is very hard to reverse the damage done, and it can take up to seven years to repair your credit. In that time frame no other credit companies will accept your credit score. You may not be able to get a new car or buy a house. Even employers are now looking at credit scores before hiring employees, to see if they can trust you, and to see if you are responsible. So it is very important to make sure you maintain or improve your credit score constantly.

This advice is not that hard to follow. Using cards can be an impulse decision, or almost like an addiction to some. The best credit card advice to give is to not get a card until you can afford the payments. Ask yourself this question: If you were to lose your job tomorrow, could you handle the repayments?

If you require some additional information on this topic check out our site. We have some great credit card advice to help you out, as well as some excellent tips for getting out of credit card debt to help you manage your cards and your debt levels properly.

Article Source:
http://EzineArticles.com/?expert=Daniel_Skilbeck

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