Pay off your credit card balance
each month. You'll avoid frittering away hundreds
and even thousands of dollars to interest and fees
every year.
2.
Think before you charge.
Unless you're in the habit of paying your credit
card bill in full each month, don't use the cards
for anything you can eat or wear.
3.
Avoid using credit cards
to buy "wants" such as a new stereo or
TV. Wait until you have the money to buy it.
4.
Leave your credit cards
for emergencies -- when the washing machine takes
its last breath or the car breaks down.
5.
Get rid of all of the
credit cards but one. Take that one and make it
hard to impulse shop with -- freeze it in a bowl
of water in your freezer.
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6.
Keep receipts on all purchases. Unfortunately
many products are made cheaply. With a receipt,
you can bring back the product for a replacement
or refund.
7.
Don't take cash out of your credit
card. The rate for cash advances is much higher.
And there is no grace period -- you start paying
interest right away.
8.
Did you really think
they'd give you something for nothing? Throw away
those offers that come in your credit card statement.
9.
Read your monthly statements
carefully. Look out for hidden charges, such as
credit insurance.
10.
Don't pay for theft
insurance on your credit card. You don't need it.
If your credit card is stolen, you're only liable
for $50, at most.
11.
Forget credit card disability
insurance. It will make debt worse, if it ever kicks
in. Even though you don't have to make payments,
the debt piles up all along.
12
Avoid those $39-and-growing
fees by not exceeding your credit limit.
13.
Pay more than the minimum.
It'll take forever to pay off your balance if you
only pay the minimum.
14.
Check your statement
to see what time and date your payment is due and
send it in early. If you're five minutes late it
could cost you $29.
15.
Always use the envelope
provided in your statement. Credit card companies
sometimes change their payment P.O. Box. If you
send it to the old address, you'll be responsible
for the late fee and, likely, an increased interest
rate.
16.
Don't be late on any
loan or credit account payment. Credit card companies
frequently check their customers' credit reports,
looking for any late payments to justify raising
the interest rate.
17.
Negotiate better terms
with your credit card issuer, especially if you've
had a year of on-time payments.
18.
Consider transferring
your balances from high-interest cards to a low-interest
credit cards. Then, make the same payment
as before, or double the minimum.
19.
Consider a home equity
loan to consolidate credit card balances. Home equity
lines and loans offer lower interest rates and are
usually tax-deductible.
