Leave Home Without It...How to Avoid Credit Card DebtWritten by Johann Erickson
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The two most important steps you can take to avoid getting into trouble with credit cards in first place is to pay off balance each month and pay on time. A good rule of thumb to remember is that if you can’t pay off most, or all, of balance on your credit card, then you have overspent and should immediately cease and desist with any additional charges. If you can’t be trusted not to use your card then give it to someone you do trust or freeze it in a block of ice in your freezer (no, I’m not kidding). Also, do make your payments on time because late fees not only add up, they can be potentially damaging to your overall credit record. Something you may want to keep in mind when hoping to get a loan for a house or a car.
Getting out of debt is not an easy thing to do, but it is possible. Of course, easiest thing to do is to avoid getting into credit card trouble in first place. So next time you feel yourself lusting over that big screen TV, think twice. By time you’re done thawing out your credit card from that big block of ice, you’ll probably decide it’s not really worth it.
For more information on your credit report and for more credit repair tips please visit us at Helpful Home Ideas.
Johann Erickson is the owner of Online Discount Mart and TV Products 4 Less. Please include an active link to our site if you'd like to reprint this article. He is also a contributing writer for sites such as Helpful Home Ideas
| | Maxing Out on the Minimum: Don’t Get Trapped Making Minimum Credit Card PaymentsWritten by Elizabeth Walling
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However, most people have far more than $1,000 in credit card debt. Let’s try more realistic balance of $5,000. Paying minimum payment on this balance with an interest rate of 18% will result in a total payoff in approximately 35 years. In that time, you will have paid almost $13,000 in interest charges alone.
These numbers can be frightening, but there is something you can do. You don’t have to pay much more than minimum to start seeing big changes in your balance. Let’s try these numbers again, this time paying slightly more than minimum payment.
On $1,000 balance at 18% interest, try paying $30 per month instead of minimum of $20. Now you will only be paying on this balance for less than four years and you will pay less than $400 in interest charges.
On $5,000 balance at 18% interest, bump payment up to $125 per month. At this rate, you will pay off your balance in about five years, and you will pay approximately $2,500 in interest charges. You could save over $10,000!
As you can see, paying minimum payment might seem more affordable at first, but in long run, you will pay dearly for it in interest charges. Just increasing your payment by a little will make a big difference. The more you increase your payment, less time and money you will spend trying to pay off your credit card debt. Do yourself a favor and don’t fall into trap of making minimum credit card payments.
For more information on Debt Consolidation Loans and Credit Repair Tips, please visit us at Helpful Home Ideas.
Johann Erickson is the owner of Online Discount Mart and TV Products 4 Less. Please include an active link to our site if you'd like to reprint this article. He is also a contributing writer for sites such as Helpful Home Ideas
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