 Thinking
About Credit?
Credit cards have a psychological effect
on most people. We have all charged something and not felt we paid for
it. Even when we get the bill we look at the minimum payment and think
" that's not so bad". Many people take this so far that it
puts them in serious debt. To really get a handle on your credit
spending you must take a different mind set. Thinking of your credit
cards as cold hard cash is not an easy thing to do. Your fighting
against Madison avenues biggest pitch and it takes some serious
awareness. Here are a few things to keep in mind about your credit
spending.
Take the amount of the purchase
you intend to make and add about 20 percent to it. That's about
the average percentage most people pay after you consider
monthly interest rate and pay off time. Keeping this in mind
makes those hard to resist bargains a little less attractive.
You are not really getting 20 bucks off on that golf club if you
put it on your credit card.
Before you make that purchase,
think, "Can I pay this off in 25 days?"
If the answer is no then you should reconsider the purchase. It
only takes a few months of not completely paying off your
balances to shoot your monthly payment up.
Read the terms very well. Pay
close attention to the interest rates and annual fees. Some
annual fees are very high. Don't be tempted by a special
introductory rate. They are usually for a very short time and
your balance is set to the new interest rate as soon as the
introduction is over.
Understand that bad credit cost you far
more money in higher interest rates on your credit cards and loans.
Keep an eye on your credit score by ordering your credit reports at
least once a year. Check them for accuracy and be quick to dispute
anything that does not seem correct. Find out more information on
repairing your credit by downloading the Credit Repair Guide,
"Give Yourself Credit" Click
here for more information.
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