Save Yourself from Credit Card Debt

Edited by Rubilyn Valdez, Karan Khanna, Rafah Perlado

2 Parts: Steps Comments
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In this day and age when acquiring a Credit Card is as easy as purchasing a hand bag online, many people fall in the trap of placing themselves in debt. What is a credit card really? The credit card is a plastic card utilized by account holders to make purchases by using the bank's money until you are able to use your own. Like borrowing many problems may arise thus causing an ever greater inconvenient. In many ways it is the luxury of being able to use a plastic in the place of money which, I can agree, can be very convenient but smart spending often brings us into financial inconvenience through unpaid credit card bills. Here are a few tips and queries to consider before acquiring a credit card.

  1. 1
    Is your income substantial enough to maintain credit card payments?
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  2. 2
    Are you responsible enough to monitor your spending?
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  3. 3
    Is the credit card distributor a credible business as many people fall for online scams that charge exorbitant credit rates?
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  1. 1
    Having a credit card has its benefits and often eliminates the hassle of dealing with the bank directly and allows acquiring products and services online a breeze
    It is also crucial to understand that the credit card is not a substitute for money but rather an opportunity for you to receive goods or services now and pay later. So now that you have your card, here are a few things to take into consideration in order to prevent credit card debt.  
    1. Consider a bill payment schedule where you can track all your payments and avoid the headache of missing payments which are added to your account and ultimate lowers your credit score.
    2. Get in the practice of using Debit Cards for your purchases. The idea is that you can't spend what you don't have which limits the need for spontaneous spending.
    3. Don't fall for the peer pressure of acquiring because people say so. The truth is most persons are maintaining the habit of spending only what they have and would limit their credit cards to just one.
    4. Limit the number of credit cards you get because as much as investors and business' boast about receiving additional points for leisure, many persons find themselves in the position of paying an exorbitant amount on credit.
    5. Be mindful of what you use your card for. Many people are often tempted to make "emotional purchases" which often lead to over spending.
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  2. 2
    These are some of the things to consider but what is equally important is to shield you from credit card theft
    Reports have confirmed that in the United States alone, millions of persons have been victim to credit card fraud. Some of the things to do in order to prevent credit card fraud are as followed;  
    1. Protect yourself online by completing login and log out information and never leave passwords and usernames available on your computer. One can imagine the easy accessibility for thieves to steal personal information and use it for unscrupulous reasons.
    2. Monitor your credit card statements and don't hesitate to request statements for your card provider.
    3. Shred, burn or carefully discard credit card information including statements and balance information as thieves use discarded documents for identity theft.
    4. Shield your ATM information from prying eyes. Sources have disclosed that there has been an increase in identity and credit card theft through ATM machine usage. When using your card at an ATM, shield the numbers when you are using the machine.
    5. Choose the right service provider as banks and other financial institutions are now implanting Fraud Locks and Alerts that will offer identity theft protection.
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  3. 3
    It is no mystery that many people are finding easier ways to make their lives more convenient but sometimes quicker isn't easier or best
    Having a credit card doesn't mean that holders should lose all sense of financial responsibility and persons like me may have a strong distaste for them. The allure of the freedom to spend money that is not yours often find persons each money wailing and tearing their hair out from the high credit card bill withholding purchases that in most cases were forgotten. So let's explore the positives of having a credit card.  
    1. You can use them internationally in most stores, restaurants and businesses around the globe.
    2. Some cards offer cash back incentives for the holder and will add up in points that may lead to additional rewards.
    3. Credit cards allow you to withhold payments that may be a spur of the moment decision and can be overridden with a simple call.
    4. Most credit card service providers offer statements that allow you to track your financial position.
    5. The most popular pro to using credit cards is that it helps to build your credit history.
    6. Credit cards allow you to make purchases and pay them off in monthly payment installments
    7. The boost and increase your purchasing powers as you are free to buy goods and services online.
    8. Credit Cards come in very handy especially for emergencies and medical care.
    9. It is a lot safer to use to make purchases instead of using hard cash which is an attraction for thieves.
    10. Credit cards are also flexible in the case of an immediate need to travel for business when cash is not readily available.
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  4. 4
    Other than the obvious facts about acquiring a credit card, it is important to note that the "plastic" is not for everyone
    Some persons with an unattractive financial history may not be eligible. Here are some ways that banks and institutions may not approve a card for you;
    1. There is a high level of delinquency on your personal and business accounts. Banks look for consistency and if you have a history of unpaid fees may bring you lower on the list in being awarded a card.
    2. A large amount of credit card inquiries in less than a year.
    3. There is a large amount due on your account. The bank believes that if you are unable to pay account fees, acquiring a credit card are opening additional debt.
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  5. 5
    It is in my opinion that credit cards should not be used everywhere and extensive care should be practiced in terms of places and services that could have easily been paid with cash
    Here are a few.  
    1. Credit Cards should not be used in clothing stores. I many cases women especially find the allure of using plastic to pay for purchases appealing and often are victims of overspending.
    2. Small eateries and tuck shops. It makes no sense using a credit card to buy one croissant, if you don't have the cash for the purchase it's probably smarter to wait until you can.
    3. Small or one man businesses. Many so called professionals go under the disguise as business men and women in order to steal credit card information.
    4. At no point should you use your credit card to pay college or any school tuition as you can imagine the problems that may arise as such.
    5. It wouldn't be smart neither to use your credit card to pay your taxes.
    6. Events such as a wedding, funeral or large parties should never be placed on credit card charges.
    7. Using your card to fund your vacation. It may seem convenient now but later when you return to an exorbitant bill may cause the stress you were avoiding with the vacation in the first place.
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If you have problems with any of the steps in this article, please ask a question for more help, or post in the comments section below.


Article Info

Categories : Financial

Recent edits by: Karan Khanna, Rubilyn Valdez

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