What is the easiest most convenient way to purchase what you want when you don’t have the money? The answer is simple; credit cards. But unfortunately this ease comes at a cost, and unless credit cards are used wisely, they can instantly turn into the cause of financial ruin.
When we use credit we sometimes don’t think about what is most important; the convenience of using a card or the debt that comes later.
How often do we just whip our card when something needs to be paid for? It’s easy, convenient and we don’t have to spend any of those greenbacks in our pocket, or lack thereof. We leave the store and go home; not worrying about what is going to show up in the mail in a few weeks. And then this false sense of security quickly becomes reality when the statement shows up in your mailbox.
If you fit this profile you need to think about the consequences of using credit cards long before you decide to swipe the plastic when checking out. Recent studies show that bankruptcy and credit card defaults are at an all time high. This shows that more consumers are not able to effectively control their finances. This problem needs to be tackled at an early stage to avoid a much more series problem in the future. Credit cards, as convenient and important to use, can still create major problems when not used wisely.
The first step to eliminating your card debt is to plan ahead. Ensure what you put on the card can be paid off at the end of the month. If the balance is too large to payoff it can take an extremely long time if the card holder has elevated interest rates. However, with some planning and discipline this can be brought under control. If you are in such a situation it is important to change your spending habits. You won’t be able to payoff your debt if you continue using the card. Then, look for other techniques to reducing your interest rates. Contact your creditors to ask for lower interest rates or contact a local non-profit credit counseling agency for assistance.
As important as it is to have credit in this day and age you need to take the necessary steps to manage your credit wisely and lift the weight of debt off your shoulders. Research your rights and options and create a stringent plan to eliminating your debt if you find yourself in over your head. Remember credit cards are an important tool to have, but managing this important resource properly is a key to maintaining good finances.