Are you getting into credit card debt?

23 September 2008

Many people have multiple credit cards that they use on a regular basis. This can be a problem as they aren't necessarily keeping track of what they're spending. It is very easy to receive the credit card bill and just toss it to one side. If you aren't keeping an eye on your bills, you may land yourself in credit card debt and not realise it.

If you aren't paying attention to your credit card bills, you may be affecting your credit rating. Credit card companies may report that you have missed a payment and your credit rating may go down. This means that you could have problems in the future getting credit with things such as personal loans and home loans.

These are some signs that you may be getting into credit card debt:

Several of your credit cards are charged up to their maximum credit limit.
You are repeatedly taking out cash advances, incurring higher interest rates.
You are using credit cards to pay off other credit cards.

If you feel you are getting in over your head with credit card debt, it is important to rectify this as soon as possible. Here are some tips on managing your debt:

Check your credit card bills as soon as they come in and total up just how much you owe.
Consider a balance transfer credit card to make it easier to keep track of your debt. You may be saving yourself money as you won't be paying numerous fees on a number of credit cards.
If you do opt for a balance transfer credit card, a credit card with a 0% interest rate for a long introductory period may suit you. Remember to avoid using your credit card during your introductory period as you will only be incurring more debt. Also remember to check the interest rate after the introductory period ends.
Work out a budget and see just how much you can pay off each week. The sooner you can pay off your debt, the better.
Check your credit file to see if your credit score has been lowered.

If you want to take control of your credit card debt with a balance transfer credit card, compare credit cards now to find a credit card that will offer you the best credit card deal. One credit card to consider is the new Woolworths credit card, the Woolworth Everyday Money card.

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