Credit Card Debt

Credit cards are nice to have, however they can become monsters controlling your life. Banks are using high credit card lines to get new customers and then they encourage big balances.

Control your own limit.

You should not carry more than 20% of your gross income in credit card debt. You should not carry more than 30% in total debt.

You only need two or three credit cards. Having an empty card set aside for an emergency is a good idea. Having several months’ salary in a savings account is better.

How to stay on top of your credit card:

• Pay the balance off every month
  Pay when the statement arrives, saves on finance charges
• If you can’t pay in full, pay more than the minimum. Minimum balance amounts are designed to make you pay the very most in finance charges. Paying even $25 extra makes a big difference.
  Pay twice a month, easier on the budget but still reduces your finance charges by lowering your daily balance.
  Request a lower interest rate.

If you find yourself sinking call the credit card company and ask for some assistance. They are generally wiling since they want their money back. If you get a customer service agent who won’t help you, call again and speak to another agent, until you find one who will help.