REDUCE CREDIT CARD ACTIVITIES: A PRO-ACTIVE APPROACH

2007-03-08 10:33:40

( Financial )



Do you carry an enormous balance in your credit card? Are you paying only the interest of your credit card purchases? Are you shuffling several credit cards? Beware! You might be a candidate for credit card debt overdose.

Credit card companies sometimes use the benefits of universal default on their favor. Universal default allows a credit card company to raise interest rates on your credit card once they got wind up of information that you missed payment on one of your credit lines. Thus, you can still suffer increasing credit card debts even if you perform well on one of your credit card payments.

You need to combat potential credit card debt overdose by being pro-active in doing reduce credit card activities. Reduce credit card activities are actually loan reduction plans followed by people who are burdened with debt problems. Plunging into it before you even get into the mess of credit card debt overdose will surely help you manage your finances and avoid uncompromising financial situation in the future.

Cut Credit Card Usage

Limit the use of your credit cards whenever possible. Do your financial transactions using cash. Try opening a debit card for your online and travel transactions. It will help you become aware of your spending since you are using your own money instead of taking out credit.

Pay Your Credit Card in Full

Never carry a balance on your credit cards. It is better to pay in full and avoid incurring higher interest rates for defaults in case you forgot to pay above the minimum next time. Also, make sure that you pay more than the minimum to your creditor if you decide to put a balance on your credit.

Set Up a Special Savings Fund

A special savings fund helps you set aside cash for emergency situations. People usually incur huge debt problems to respond to emergency situations where immediate money is needed.

Update Your Credit Report

Check your credit report from the three main credit bureaus to update you on your credit performance. Also, it helps you correct errors on your credit reports that might affect the level of interest rates that lenders will be charging you.

Do not wait for debt to drown you before you take steps to manage your finances. Be pro-active and reap the benefits of a stress free finance. Implement reduce credit card activities now!


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