Debt Management and your Credit Card Company
Some of the worst debt can be accrued with credit cards. Part of
the problem is that it is just so convenient; even fast food
companies now take plastic.Remember that credit card
companies have their own interests in mind, not yours. Be leery
about any new program or card they offer you. Especially avoid
paying extra for any type of insurance or credit monitoring
program. Chances are, you will never need such services, but
they will continue to charge you each month nevertheless. Part
of debt management is avoiding debt you do not even need to
have.
Avoid credit card offers that have any membership charges or
other standard fees. There are plenty of cards available that
will never charge you anything extra if you pay off your balance
each month.
When signing up with a credit card company, consider why you
need or would use a credit card. Compare grace periods, fees,
interest rates, and any incentives like a rewards program or
airline miles between the various credit card companies. Do not
simply take the first credit card offer you see. If you know
someone with a credit card you are considering, ask them how
they like it and if they would recommend it. Manage your debt
wisely and choose against getting a credit card if there is more
harm than good.
If you have been with the company awhile, ask for a lower
interest rate. Threaten to transfer your balance or cancel your
card if you do not receive a lower rate, especially if you have
better offers with other companies.
If you have a good history with the company, but just paid
the bill late once, ask them to forgive you and take off any
late penalties and charges. Then, don’t do it again in order to
stay in good favor with them.
Beware of store credit cards. The fewer credit cards you have
the better, and store cards are usually not usable elsewhere.
They will often have great introductory offers to tempt you to
buy a lot, but put some thought into it before you agree to any
credit card deal. This can be especially hard when you are in
your favorite store and are already tempted to spend more than
you have.
A big part of good debt management is avoiding credit card
debt. Each credit card you own increases your chance of having
an unreasonable amount of debt. |
