Is credit card debt really bad?

Yes, it is. This type of debt can be such a huge headache. You can say that most Americans see credit card debts as headaches. Once consumers have fallen prey to the attraction of convenience of having a credit card, it becomes quite hard to dig themselves out of the pit once they are in debt. There are people who tend to pay off the minimum requirement but ignore the rest of their debts. They, in effect, create bigger debt.

Credit card debts tend to grown into huge proportions when people avoid paying off their full credit card debt each month. The interest and charges grow along with the bloating principal debt. These debts practically devour your finances. You would be left with a completely messy personal finance. In some cases people have had to declare bankruptcy because of this debt.

Your credit card debt will ultimately affect your credit score and that will make it much more difficult for you to access loans in the future. Chances are you will end up only being able to get loans at higher interest rates.

Paying Off the Debts

If you find yourself practically buried under these kinds of debts, you should carefully consider all your options. Study how you can get out of your debts. It is important that you learn how the industry works. Most of the time, it works to your disadvantage. Consider getting some professional help and guidance on how to pay off all your credit card debts.

This is forcing a lot of people to abandon their gas guzzling SUV’s for car pools, public transportation, and even biking. For those of you who traveling long distances to commute to work, these prices can seriously hurt your monthly budget. Trying to create wealth with a such a high cost is going to be tough. However, there are things you can do to lower the price you pay for gasoline.

One of the best ways, besides those three already mentioned, is to find a gas credit card that can give you either a discount on your gas fill ups right away or give you cash back at the end of every month or year. There are a lot of these cards out there and some offer even more benefits that just gas.

Like these gas cards that offer you cash back on gas station fill ups as well as money back on all your autmotive needs. Some offer as much as 6% on eligible purchases and some offer 0% APR on purchase and balance transfers. So if you’re frugal about your money you can use the gas money you would have spent, put it in a savings account and earn a little extra cash in the process.

Make sure, like all credit cars offering you something big, that you find one with no annual fee, and try to only use it for gas purchases. Don’t go crazy and put everything you can on the card. Only use it for purchases that can save you money. Then pay off the credit card right away.

The problem is most student credit cards have horrible rates and can even charge you crazy fees. The second you activate one of those cards you’ll get charged crazy fees and you won’t have even used the card once for your own purchases.

That’s why when I was told about this site which lists specific credit cards for students I thought it would be a good idea to share it with our readers. The key to good cards for students is ones that have low credit limits so you don’t go spending too much, low to no APR (some offer 0% APR to begin with), and absolutely no fees. This site lists a bunch.

Also you want to be careful of cards that call you every other day trying to get you to sign up for programs that charge directly to your card or companies that try and get you to sign up for 20 other cards at the same time. That’s why the sites, student credit card reviews section is great to read about what each credit card has to offer and what the companies are like.

The best thing you can do when getting into the world of credit card use is to know about who your credit card company is. Don’t think all credit card companies are the same. If you want to create wealth for yourself, credit can be a great thing, but don’t let it cause you tons of headaches.

You too can have good debt management. You just need to observe proper debt managing strategies. One place to help you out is to find a good debt management program. One that doesn’t put you in more debt and actually helps you get out of the debt you’re in. Some are just looking for money while others truly want to help you manage. Any free ones are great, even if they help a little, any advice is better than none.

Most people who don’t manage their debt wisely probably have most of their debt tied up in credit cards. America has become a swipe it and forget it nation and a lot of people are finding themselves further and further in bad credit card debt.

You need to get out of this debt fast by paying off the principle as soon as possible. This may mean switching your cards to 0% or at least low APR, and doing so as many times as it takes to remove your debt. For help on a budget of the highest APR you could carry balances on and still payoff your debt try this credit card payment calculator.

Find out how to get out of debt, then stay there, or use debt wisely. Don’t fall into credit card traps.

A lot of times people get into debt, large debt, through credit cards. They take on too much and then the interest alone can’t be payed off in a timely fashion. That’s why some people are finding that if they use credit card debt consolidation they are able to quickly eliminate foolish debt and build back up their credit by spending wisely.

The first place we’d suggest you look is for 0% balance transfer cards. They are are a great way of getting rid of the monthly finance charges that eat away at most of your payment. Or you can try and find a low, less than 5% APR for balance transfers and keep the monthly finance charges to a minimum.

If that doesn’t help then you need to get debt consolidation help from somewhere and you need to get it fast. Don’t be bashful, go out and find the help and get on the right track.

I was recently contacted to write a little review about the loan site, Credit Loan. Most of the time I would pass these over, even with the cash incentive. But this site is full of useful information for all our readers and thought it would be good to write about. 

The site has articles on everything from getting auto and home loans, to helping you repair bad credit. Repairing bad credit can be a big issue you haven’t done your research in books, asking loan officers, or reading sites like this.

Another good thing about the site is that it has financial calculators all in one place. Most of the time (since I don’t utilize a browser bookmark system) I have to google all the different calcs when I need them. This site has a bunch all together. Sweet!

Taking on a loan should be a big decision with a lot of research done. Unfortunately it’s often just a “sign on the dotted line” type of transaction which has come to bite many many people looking to increase their credit score.

Fond Pride of Dress, is sure a very Curse;
E’er Fancy you consult, consult your Purse.
Pride is as loud a Beggar as Want,
and a great deal more saucy.

“When you have bought one fine Thing you must buy ten more, that your Appearance may be all of a Piece; but Poor Dick says, ‘Tis easier to suppress the first Desire, than to satisfy all that follow it. And ’tis as truly Folly for the Poor to ape the Rich, as for the Frog to swell, in order to equal the Ox…And after all, of what Use is this Pride of Appearance, for which so much is risked, so much is suffered? It cannot promote Health, or ease Pain; it makes no Increase of Merit in the Person, it creates Envy, it hastens Misfortune.

But what Madness must it be to run in Debt for these Superfluities! We are offered, by the Terms of this Vendue, Six Months Credit; and that perhaps has induced some of us to attend it, because we cannot spare the ready Money, and hope now to be fine without it. But, ah, think what you do when you run in Debt; You give to another Power over your Liberty. If you cannot pay at the Time, you will be ashamed to see your Creditor; you will be in Fear when you speak to him; you will make poor pitiful sneaking Excuses, and by Degrees come to lose your Veracity, and sink into base down right lying; for, as Poor Richard says, The second Vice is Lying, the first is running in Debt. And again, to the same Purpose, Lying rides upon Debt’s Back. Whereas a freeborn Englishman ought not to be ashamed or afraid to see or speak to any Man living. But Poverty often deprives a Man of all Spirit and Virtue: ‘Tis hard for an empty Bag to stand upright, as Poor Richard truly says.

What would you think of that Prince, or that Government, who should issue an Edict forbidding you to dress like a Gentleman or a Gentlewoman, on Pain of Imprisonment or Servitude? Would you not say, that you are free, have a Right to dress as you please, and that such an Edict would be a Breach of your Privileges, and such a Government tyrannical? And yet you are about to put yourself under that Tyranny when you run in Debt for such Dress! Your Creditor has Authority at his Pleasure to deprive you of your Liberty, by confining you in Goal for Life, or to sell you for a Servant, if you should not be able to pay him!

When you have got your Bargain, you may, perhaps, think little of Payment; but Creditors, Poor Richard tells us, have better Memories than Debtors; and in another Place says, Creditors are a superstitious Sect, great Observers of set Days and Times. The Day comes round before you are aware, and the Demand is made before you are prepared to satisfy it. Or if you bear your Debt in Mind, the Term which at first seemed so long, will, as it lessens, appear extreamly short. Time will seem to have added Wings to his Heels as well as Shoulders. Those have a short Lent, saith Poor Richard, who owe Money to be paid at Easter. Then since, as he says, The Borrower is a Slave to the Lender, and the Debtor to the Creditor, disdain the Chain, preserve your Freedom; and maintain your Independency: Be industrious and free; be frugal and free. At present, perhaps, you may think yourself in thriving Circumstances, and that you can bear a little Extravagance without Injury; Gain may be temporary and uncertain, but ever while you live, Expence is constant and certain; and, as Poor Richard says, rather go to Bed supperless than rise in Debt.”

Do a reality check Assess your net worth using this handy browser based balance sheet. Get into the habit of checking your net worth monthly and resolve to increase it each time you check.

Watch what you spend Get a small notebook and write down every penny you spend for the next month. Your spending habits may surprise you. While shocking, this exercise can help you decide where to make changes.

Plan to be rich Now that you know what you are spending, make a written budget and follow it. This is the most effective way to live within your income and learn good spending habits. Review your expenses against your budget weekly or monthly.

Clean financial house If your bank account is unreconcilable, open a new one and resolve to keep it clean, meaning record every transaction in the register and reconcile it when the statements come. At a minimum, use online banking to keep an eye on your account and never give the bank the satisfaction of charging you a single overdraft fee.

Check your credit score Get a free report at freecreditreport.com. If it’s low, take steps to improve it. Always pay parking tickets and library fines, if left to amass fines and penalties these can actually negatively impact your credit score. Even if you aren’t looking to use credit yourself, potential employers and landlords may run a credit check on you before making a final decision.

Make a habit of recordkeeping Don’t scramble at tax time -– or miss a deduction -– by organizing your records early in the year. Save receipts, cancelled checks, pay stubs, bank and investment statements, and proof of any other deductions you may want to claim. Folders and spreadsheets are handy tools to keep order.

Reduce your debt The less money you owe, the less interest you pay, and the more money you can funnel into future investments. Figure out which of your credit cards has the highest interest. Pay the minimum monthly charge on all of your debts except the one with highest interest. Throw every extra cent you have at that debt until it is paid off. Continue in this way until you are debt free. If possible, consider switching high interest balances to a 0% APR credit card.

Start saving Set aside a percentage of your monthly income as savings. Ten percent is a good rate for investors in their twenties and thirties; if you are behind in your retirement planning, adjust to a higher percentage. Keep it simple, set up an automatic investment plan to pay yourself first monthly.

Plan for retirement Contribute to an IRA or your company’s 401k plan. Your company is likely to match a portion of your contribution, check with the plan administrator at your place of employment for more information.

Pay with cash This is the absolute surefire way to stay out of debt. If you don’t have the cash for a purchase you are considering, decide not to buy it right now. Then make a plan to come up with the cash to make it happen. Remember, there are two things you can do with money: save it or spend it. Saving money increases your wealth, spending money leaves you poorer.

However, now that you’re in a little, or a lot, of debt doesn’t mean you have to be penalized for it. You could keep your debt on high interest credit cards or you could switch them over to a 0% APR credit card that allows you to transfer your balances free of charge. It’s a way for credit cards to get you to bring your debt to them and hopefully not pay it off, or at least use their card instead of a competitors.

So use that to your advantage. I recently happened across a website, quite randomly, at www.BalanceTransfer.cc. They’ve organized all the most current 0% APR credit card offers into a great, easily navigable page(s). They’ve even got a 0% credit card offer blog that can help explain some of the issues with gimmicks and help you save a lot of money in interest.

I’ve noticed also, and had some friends sign up for, discover card 0% intro APR deals that not only save them the pain of paying interest on high debt but also give a little back if they ever decide to manage their debt well and use the card to pay for common purchases (more on that to come).

I’ve used a chase credit card 0% intro APR card that seems to be a great deal but I’m also thinking about going with an American Express credit card because I’ve never had one before and have wanted to have an AE card on hand just in case I’m ever somewhere that I need to use one. Plus they’ve got that cool “blue” card that’s almost see through.

Anyway, the point is, you can save a lot of money if you transfer your credit card debt to a 0% APR credit card. Make sure you don’t have to pay any balance transfer fees (some will sock you $75 or more to just bring your money over), and you’ll be on your way to living debt free in no time.