Green Panda Treehouse

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Photo Credit: The Consumerist

Credit card (and other) debts can grow like weeds. Try to tame the it before debt gets out of control. I’ve many of these lessons from experience.

• Remember real money (yours) is involved. You have to pay this back and it will be with interest. Cash advances typically have a higher interest rate than standard purchases. I learned this the hard way. I feel so stupid knowing I spent YEARS paying off a card filled with stupid charges.
• Review your monthly statements. Identity theft is becoming more common and a good habit is to look at your statements every month. Sometimes credit card companies make mistakes on charges. I login to my credit card account every couple of days to see if anything suspicious happens. I need to work on checking my paper statements.
• Pay your bills on time. A good credit history can help when looking for a home as a higher credit score leads to lower interest rates. I had a bad habit of losing paperwork, so I automated all my bills. It saves on late fees and stamps. Many banks have online bill pay as a feature.
• If you can, pay the full amount owed. Credit card companies might call you a “deadbeat“, but at least you’re not tied to them each month. If you can’t, then pay as much as you can. Try a debt snow ball or even snowflaking. Find money in your budget to eliminate your debt.
• NEVER, EVER lend your credit card to anyone! Even if it is a trusted family member or family. This account is tied to YOU and you will be held responsible.

I amazed at how long it took me to learn these lessons. What do you personally do to keep credit card dbt at bay? How many credit cards do you use?