Credit cards have its perks, but they’re often abused. When that happens, damage is done. When damage is done, you end up paying for it literally. We’ve learned the hard way after paying over $7,000 in debt plus interest. After awhile, you realize how important it is to take ownership over your credit cards and not the other way around. Here’s some tips we thought we’d share:
1. Ask “What’s in it for me?”. Every credit card offers a balance and an APR. It’s your job to separate the bad from the good. Beware of short-term low APRs. Pay attention to the long-term APR rates. Your goal should be single digits APRs or less. If the credit isn’t as good, strive for 10-15%.
2. Avoid retail cards. Employees are on a mission to get some commission. Plain and simple. The credit card companies, retailer, and employee jump for joy every time they hook in a victim. It’s another high APR with low balance. The only incentive they have is a small discount on the table but will be worth nothing if a balance is carried on them. There are better cards out there.
3. Eliminate Any Lingering Balance. Make a plan to pay off any credit card debt that you have in substantial amounts. The sooner that is accomplished, the sooner you can stop handing credit card companies your hard earned dollars in interest payments.
*Image courtesy of Adam Gault.
Enjoyed this article?