Credit Card Debt

Credit Cards had been one of the greatest boons for mankind of this Century. Through Credit Cards buyer can buy goods or services, without having cash in hand. A Credit Card is only an automatic way of offering credit to a consumer. Today, every Credit Card carries an identifying number that speeds shopping transactions. Imagine what a credit purchase would be like without it, the sales person would have to record your identity, billing address, and terms of repayment.

But, today this boon for mankind has turned into curse. People are using their Credit Cards, just because they can avail the product or service of their choice, without thinking whether they can repay the amount with interest later. U.S. citizens are buying on impulse.

"Credit buying is much like being drunk. The buzz happens immediately, and it gives you a lift. The hangover comes the day after".

The major cause of U.S. population under debt today is Credit Card Debts. People are possessing more than one Credit Cards and using them extensively without making timely payments. This is increasing their interest rates and also their total Debt and people are opting for more and more credit card debt settlement .
Credit Cards were created for people's convenience where they can smoothly carry out their financial transactions, without carrying much cash. Now People are carrying the burden of Debt because of Credit Cards.

Below are some simple Tips & Advices for Credit Card users which can be or rather should be followed to avoid Debt like situations and lead tension free life:

1) Use Credit Cards when in dire necessity.

2) Stop spending on impulse. Check out whether you really need the product or service. Just because your neighbor is having it or it's the current craze you needn't buy it.

3) Do not cross your credit limit unless it’s an emergency. Banks charged a hefty 2% interest for all amounts in excess credit, in addition to the existing financial charges.

4) Every month allocate a portion of your income for Credit Cards. Try to pay more than minimum due amount.

5) Try to maintain not more than 3 Credit Cards.

6) Apply only for Credit Cards, when you are having stable source of income and can afford it. Otherwise you may end up in heavy Debts and even bankruptcy.

7) Cash advances are convenient BUT costly. Banks charged 18% per annum of cash advance amounts AND a 5% interest OR minimum of RM20 on the amount drawn. There is no interest-free grace period and the interest is accrued the moment cash is received.

8) Secure a list of your Credit Card numbers and report lost or stolen cards immediately. All banks have a 24-hour banking service and you’ll not be held liable for any purchases made with the card after reporting.

9) Inform and update your Credit Card issuer of changes in your personal particulars such as new mailing addresses so that billing can be mailed on time to avoid late payment charges.

10) Keep track and list out the things you bought with your Credit Card to cross-refer on the billing items to filter out misuse and credit frauds.

11) Be aware of the interest-free grace periods for settling outstanding bills. If your billing statement arrives ‘fashionably’ late every month, complain to your bank. Late mailing might be a contributing factor in the accumulation outstanding bills over the month.

12) When you want to cancel your Credit Card, it’s better to go straight to the bank to settle it rather than post to them. Call the bank and follow up closely on the cancellation status, as there have been many cases where banks still impose charges to consumers even AFTER they’ve canceled their cards.

13) Go for Credit Card Debt counseling, with professionals immediately, in case your financial situation is not manageable anymore by you.

Control your spending control your Debt.

"Credit Cards are for convenience and not for collection".