I Know You Couldn’t Help Yourself
We talked about this before Christmas. Remember, about having a debt free Christmas? No, I am not scolding. I have seven grandchildren plus nieces and nephews. All I can see are their
darling little faces and I am off to the store. And it is not only the kids; it’s the toys and the clothes that are so fun to buy for them. I usually start shopping throughout the year; but there are things that they just need as Christmas nears. And honestly, I hide these gifts away and forget where I have hidden them and sometimes have to start over. My children and grandchildren love this about me; I wonder why? Many times they receive the” lost” gifts on random days throughout the year.
Your First Credit Card Bill has Come
The warm feelings of the Christmas holidays and giving are over and you now feel the force of that horrible knot you have been avoiding for a month. It’s not the end of the world, but it can be bad, depending just how crazy you got with the plastic. But, the damage is done and now is the time to put on the big boy or girl panties and face it head on. First, take account of all the credit card debt you have. Check out the interest rates. Choose the cards with the highest rates and start to pay them off first. Not just minimum payments but as much as you are able, above the minimum payment and continue to pay minimum amounts on the lower interest rate cards. As the highest rate card is paid off; you can then go to the next highest rate bill and do the same. Use the money that went for the first card and add it to the minimum payment of the next one and before you know it, that one will be paid off. Continue to do this until you have paid them all off. Now, put the cards away in a safe place and DO NOT USE THEM. It seems like Credit Card Companies send out millions of applications daily for credit cards with low interest rates for 6 to 12 months and then return to high interest rates. They advertise that you could transfer all your high interest balances to their card. Read all the small print very carefully and know that they will charge you a fee to switch your balances over. If you know you can pay all the debt off before their interests rates shoot up to the moon; it may not be a bad ideas for you, but if not, I wouldn’t do it.
Signing up for New Credit
You must keep in mind that every time you apply for a new card, it affects your credit score. Every time you close an account it can affect your credit score. So really make sure that new credit card with the great low interest will really work for you, before signing up. Also, keep an eye on your credit score to make sure that no one else has signed up for a new credit card in your name. You can get a free credit score from the government once a year that will not affect your credit score. Since there are three credit bureaus that make up your score; it may be a good idea to check with a different one of them every four months. They usually, but not always, will have the same things on them and this way you can keep an eye on your score three times throughout the year for free. If you want to close your credit card account you may want to wait about twelve month after you have the card paid off to close it. Closing accounts may also affect your credit score, even when you no longer have a balance, so put the card away and cancel after a year. This is a terrible economy and millions of American’s are hurting. Don’t let the Credit Card Companies entice you. The grass is not greener when you are in debt. Scale down, live within your means and save. These are the things that will get you through this government made mess.
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