Are you treating your credit cards as loans?

If you still aren’t aware then let us tell you that there is a possibility of Federal Reserve interest hike and if you are carrying a lot of balances on your cards then it can turn out to be a very costly habit—if at all, the interest rate rises. As per the Federal Reserve Data, the total amount of debt stood at $901 billion in the month of May—a sharp (3.19%) increase from the previous year. Unfortunately, it has been found that consumers are shopping more on their credit cards and not paying off bills on a monthly basis. Needless to mention, this can turn out to be a very costly fiscal habit if the interest rates are really raised.

There are borrowers who rely on credit card relief programs in order to bail themselves out of their debt woes. However, the question of applying for these programs only arises once you are into heavy financial debts. How about acquainting yourself with a few quick tips to avoid debts at the first place? Here is a rundown! Do read on!

How to avoid credit card debts

If you are using your credit cards unwisely then this practice can actually lead to a mountain of debts. A glimpse of the aforementioned statistics might already have given you an idea about the same. So, let us go through the wide array of effective tips aimed at helping borrowers avoid uncontrollable credit card debts.

Use your credit cards but stick to a budget

This is the best way to keep your credit card spending in check. How many credit cards do you have? What are the credit limits on those cards? Make sure you are bringing each and every credit card of yours within the framework of the budget. If you are not able to spend within the budget then do not carry the credit cards at the first place.

Do not let your balances pile up

The credit card can turn out to be a very effective way of paying bills while shopping—but only if you are actually paying off balance every month. However, if you choose to pay off only 2-3% of the total balances every month, then you are bound to see your debts escalating out of control. Our advice for you would be to treat your card as convenient means of paying for the items and not as a high interest loan.

Do not make the mistake of treating of credit cards to sponsor exorbitant lifestyle

It is very important for you to understand that your credit cards are not your passport to an exorbitant lifestyle. Do not buy anything with the cards which you couldn’t have bought if you were carrying cash instead of the card with yourself.

Conclusion

Hopefully, the points mentioned above will help you stay out of debts. Start working on these tips from today if you aren’t doing it already. Don’t wait for your credit card bills to spiral out of control. Act now, without delay!

7 Responses to Are you treating your credit cards as loans?
  1. paul paquin
    October 12, 2015 | 9:39 pm

    This is an informative post. You are right, so many consumers feel that credit cards are their passport to an exorbitant lifestyle, but in reality once they are maxed out now it becomes their biggest nightmare. People have to look at credit cards as a way to build credit, and that is what they should be used for, not building debt, but build high credit limits which will raise your score.

  2. credit card debt
    October 19, 2015 | 7:25 am

    Usually I don’t learn article on blogs, but I would like
    to say that this write-up very forced me to try and do it!
    Your writing taste has been amazed me. Thank you, quite great article.

  3. Free Credit Card Numbers That Work Online
    December 21, 2015 | 2:22 pm

    Ideally, a credit card would be used with the intent to pay the balance
    when it is due. If you owe back income, be careful that the IRS does not have to respect adjudication from a divorce decision. Payments by credit card are considered more
    favorable to the merchants, since stealing of
    cash by their workers, or loss due to robberies, is eliminated.

  4. hey
    February 21, 2016 | 11:51 am

    Thanks for ones marvelous posting! I genuinely enjoyed reading it, you are a great author. I will ensure that I bookmark your blog and will come back very soon. I want to encourage yourself to continue your great work, have a nice morning!|

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    April 22, 2016 | 9:49 am

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    October 24, 2016 | 12:03 am

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Leave a Reply


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Trackback URL http://mynextbuck.com/are-you-treating-your-credit-cards-as-loans/trackback/

Are you treating your credit cards as loans?

If you still aren’t aware then let us tell you that there is a possibility of Federal Reserve interest hike and if you are carrying a lot of balances on your cards then it can turn out to be a very costly habit—if at all, the interest rate rises. As per the Federal Reserve Data, the total amount of debt stood at $901 billion in the month of May—a sharp (3.19%) increase from the previous year. Unfortunately, it has been found that consumers are shopping more on their credit cards and not paying off bills on a monthly basis. Needless to mention, this can turn out to be a very costly fiscal habit if the interest rates are really raised.

There are borrowers who rely on credit card relief programs in order to bail themselves out of their debt woes. However, the question of applying for these programs only arises once you are into heavy financial debts. How about acquainting yourself with a few quick tips to avoid debts at the first place? Here is a rundown! Do read on!

How to avoid credit card debts

If you are using your credit cards unwisely then this practice can actually lead to a mountain of debts. A glimpse of the aforementioned statistics might already have given you an idea about the same. So, let us go through the wide array of effective tips aimed at helping borrowers avoid uncontrollable credit card debts.

Use your credit cards but stick to a budget

This is the best way to keep your credit card spending in check. How many credit cards do you have? What are the credit limits on those cards? Make sure you are bringing each and every credit card of yours within the framework of the budget. If you are not able to spend within the budget then do not carry the credit cards at the first place.

Do not let your balances pile up

The credit card can turn out to be a very effective way of paying bills while shopping—but only if you are actually paying off balance every month. However, if you choose to pay off only 2-3% of the total balances every month, then you are bound to see your debts escalating out of control. Our advice for you would be to treat your card as convenient means of paying for the items and not as a high interest loan.

Do not make the mistake of treating of credit cards to sponsor exorbitant lifestyle

It is very important for you to understand that your credit cards are not your passport to an exorbitant lifestyle. Do not buy anything with the cards which you couldn’t have bought if you were carrying cash instead of the card with yourself.

Conclusion

Hopefully, the points mentioned above will help you stay out of debts. Start working on these tips from today if you aren’t doing it already. Don’t wait for your credit card bills to spiral out of control. Act now, without delay!

7 Responses to Are you treating your credit cards as loans?
  1. paul paquin
    October 12, 2015 | 9:39 pm

    This is an informative post. You are right, so many consumers feel that credit cards are their passport to an exorbitant lifestyle, but in reality once they are maxed out now it becomes their biggest nightmare. People have to look at credit cards as a way to build credit, and that is what they should be used for, not building debt, but build high credit limits which will raise your score.

  2. credit card debt
    October 19, 2015 | 7:25 am

    Usually I don’t learn article on blogs, but I would like
    to say that this write-up very forced me to try and do it!
    Your writing taste has been amazed me. Thank you, quite great article.

  3. Free Credit Card Numbers That Work Online
    December 21, 2015 | 2:22 pm

    Ideally, a credit card would be used with the intent to pay the balance
    when it is due. If you owe back income, be careful that the IRS does not have to respect adjudication from a divorce decision. Payments by credit card are considered more
    favorable to the merchants, since stealing of
    cash by their workers, or loss due to robberies, is eliminated.

  4. hey
    February 21, 2016 | 11:51 am

    Thanks for ones marvelous posting! I genuinely enjoyed reading it, you are a great author. I will ensure that I bookmark your blog and will come back very soon. I want to encourage yourself to continue your great work, have a nice morning!|

  5. dcpz.com

  6. cheat codes
    April 22, 2016 | 9:49 am

    Thank you for your article.Much thanks again. Fantastic.

  7. reversemortgagepros.blogspot.ca
    October 24, 2016 | 12:03 am

    You should take part in a contest for one of the greatest websites
    on the internet. I will recommend this web site. Thanks, Shad

Leave a Reply


Wanting to leave an <em>phasis on your comment?

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