It’s very easy to end up with an abundance of credit card debt, especially with credit card issuers constantly sending out advertising in email and postal mail. Most people who have had to ask a third party to “fix my credit” will attest to the fact that they were drawn in by these ads. In fact, there was a period of time when many credit card issuers were soliciting college students, offering them lines of credit sometimes without the approval of their parents who were paying the bills. While the intention was to teach the young people responsible spending, the reality was these students were vulnerable and often did not think far enough ahead to realize they would have to pay the money back.
Desperate times require desperate measures and many people in the current economic downturn are asking professionals to tell them “how to fix my credit,” and their problems are mainly because of credit card debt. Certainly some people overdo it and buy a home or car they really can’t afford, but they (usually) somehow manage to make good on those loans. Most people have a different idea about credit card debt; it’s unsecured, so it tends to go to the bottom of the list. Just because you went out and spent $500 on your credit card to buy a new television doesn’t mean the credit car company is going to come and repossess it if you don’t pay. On the other hand, if you don’t make that car payment, the bank is going to come looking for the car.
Is there a way people an afford getting into credit card debt? There are several things people can do to properly manage their debt and not have to contract a credit repair services agency.
• Carefully choose the credit card offers you accept
• Minimize your credit card spending
• Limit yourself to no more than 3-4 cards
• Develop the habit of paying credit card balances in full each month except for major purchases
• Never use your credit cards for daily expenses
Making the right choice in credit card usage will definitely help you avoid credit card debt, but not everyone has that self-control. Stores have sales and people think they just “have to have” those things. They may never use that item, but it was on sale and they “saved money.” Credit repair companies are bombarded with clients who really don’t know how to avoid credit card debt because the fell for that offer of 0% interest for the first year but overlooked the 22.9% interest after that. Then there are the offers of “low” $15 a month payments that balloon to $25 or more when you charge up to your credit line. These are the types of thing that get people into credit card debt they can’t manage: they just don’t read all of the fine print. Perhaps it is because they don’t take the time or because no one taught them the importance of reading contracts and disclosure statements before agreeing to anything.