Do YOU Make Any of These 7 Common Credit Card Mistakes?
MISTAKE 1. Paying a little bit over the minimum payment on each credit card?
FACT: You will pay off your credit cards quicker by following this simple plan: Let's say that you are adding a total of $150 to your payments, split between 6 cards. That's $25 extra to each card.
By taking that extra $150 each month and *focusing* it on paying down one card, you will pay off your cards quicker. First, one card is paid off.
Then, take that payment + the $150 and use it to pay off the next card. And so on. You will be debt-free, probably, in the next 6-7 years.
[Each card not being focused on gets paid the minimum amount allowable.]
MISTAKE 2. Waiting until the last moment to pay your credit card bill.
FACT: Your card is accruing interest *every day*. By paying your bill as soon as you receive it, you will save money in interest rate costs. Also, did you know that it takes as long as 8 days after receipt of your payment for the credit card company to process your payments. HUM....wonder why you're accruing those late payments. Even if you make your payment the date you receive your credit card statement, you could be late for them processing the payment. Be aware of the time you have and make sure you are making those payments quickly.
Note: This becomes "wait until you can" for 3% and lower interest rate cards (like 0% interest).
MISTAKE 3. Throwing out all new credit card offers before you even look at them.
FACT: If you're paying 10% or more interest, you should take every opportunity to transfer your balances over to lower interest cards. (Especially the 0% for 6 months!)Not only can you use the extra money you would have paid to help pay off one card quicker, but now your interest rate is also lower.
MISTAKE 4. Using your credit card as an ATM card to "borrow" cash from.
FACT: You have to pay a higher interest rate on cash than for merchandise. While there is a sound economic reason for this extra interest on cash, it is not a sensible thing to do. There are also extra charges added to borrowing cash from your card.
MISTAKE 5. Using your card to pay for food.
FACT: You only have your food for a short time. You have the bill for much longer - and at interest. You know where your food ends up? That's where your money ends up, too.MISTAKE 6. Buying on "Impulse" or "Just to feel better."
FACT: The number one reason that most people are in so much debt is the inability to delay gratification. (It's almost like a romance.)Before you purchase anything else on credit, ask yourself "How is this going to benefit me a year from now?" For most things, it won't.
MISTAKE 7. Making minimum payments on all your credit cards.
FACT: A $1,000 charge today at a typical rate of 18% interest, with you paying only the initial minimum of $20 per month will end up costing you over $1820 over the next 91 months. That's assuming that you never miss a payment and that your payments are never late. And assuming that you never accept the lower minimum payments as time moves on.Now, if you just plain want to eliminate your credit card debt, then there is a unique, almost unheard of a plan to eliminate your unsecured debts.
That plan has succeeded for thousands of accounts in the past 2 plus years.
- It's NOT Consolidation
- It's NOT Bankruptcy
- It's NOT Mediation
- It's NOT Another loan
And it has nothing to do with lowering your current lifestyle.Let your friends know about this information! This archive of FREE Debt Elimination Information is continually growing.
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