Do's and Don'ts of Owning a Credit Card

Statistics show that today there is more than $900 billion in debt incurred by consumers. This is mostly due to home foreclosures and homeowners using credit cards to pay for mortgages, food, gas, and other necessities. Debt is a reality in our society, and one of the best ways to decrease this staggering statistic is to understand the do’s and don’ts of owning a credit card.
The Do’s of Owning a Credit Card
* Keep one credit card for emergencies only; cut up the rest.* Pay more than the minimum amount each month and/or the entire balance.* Pay the credit card bill on time.* Reduce the interest rate by calling the credit card company.* Pay for items with cash.* Keep credit card debt at 75% of your income.* Rip up credit card applications received in the mail.* Keep track of your expenses by budgeting.
The Don’ts of Owning a Credit Card
* Don’t carry a credit card with you.* Don’t shop online.* Don’t apply for another credit card to pay off the one you have.* Don’t apply for in-store cards.* Don’t cancel credit card accounts even though you owe nothing.* Don’t charge anything unless you can pay for it in full.
While these are just some of the do’s and don’ts of owning a credit card, the key to handling your debt successfully is to be financially responsible. While it is true that most consumers are finding it harder to make ends meet today, adding the extra burden of credit card debt can cause more stress and ill health.
As stated earlier, the home foreclosures are having a devastating effect on the economy. Food and gas prices are rising every day and those in debt are undoubtedly feeling it more than others.
We are all worried about the current state of the economy as it relates to our own individual financial status. Economists state we are in a recession and more and more banks are reducing the amount of credit given to consumers. This is the time when we have to buckle down and reduce as much of our debt as possible.
Credit card debt has soared, as evidenced by the statistics. The best we can do for ourselves and our family is to budget our finances, reduce expenditures wherever we can, and pay down credit card debt as much as possible. Hard sacrifices will have to be made; no one said it would be easy. But if we begin with one simple rule, it would be that, "if we can’t afford it, we shouldn’t buy it." Then we may finally see light at the end of this tunnel.