Credit and Debt Management
A very important part of debt management is managing your
credit. You will want to be familiar with your credit report.
Negative information on your credit report will affect your
accounts, regardless of the accuracy of the information. The
federal government as set up a way for you to get a free credit
report for each of the three credit reporting agencies. Visit
www.annualcreditreport.com or call (877) 322-8228 to get
your free credit report.
Another part of debt management is wise credit card use.
There are several things you will want to look at when choosing
a credit card. First, determine what you need the card for. Are
you looking for a card for emergencies only or for daily
purchases? Are you looking for rebates and incentives? What type
of credit cards is accepted at the places you will most need to
use a credit card?
Look at the grace period offered by each credit card you are
considering. There are many cards available that will not charge
you any interest or fees if you pay off the balance each month.
Also look at the annual percentage rate (APR). There may be a
low rate offered as an incentive, but also look at the APR after
the promotional period is over and the default rate.
Another thing worth considering is how much are annual fees
and transaction fees. You will also want to look to see if the
interest rate is charged based on the average daily balance or
on some other figure. Based on what you have determined you
need, these factors will help you determine which card is right
for you.
Be careful how you use your credit cards. Credit card
companies want to earn money, and they want to get your money.
There is no limit to how much a company can charge you for
interest, fees, and penalties. Pay off your balances as quickly
as you can, and look at each statement for errors.
Watch how you manage your credit. Work on lowering your
dependency on credit cards as a part of debt management. |
