Credit Debt Management
Most of the credit card companies offer a free trip or so to your
favorite place if you buy products using their cards. Don't fall
into the trap as this is all marketing gimmick - they don't have
so much money after all to send you to Geneva by flight for just
using their card.
However if you ever fall into a debt trap, what you need most is
a nonprofit credit debt management program.
According to industry reports if you're a woman between the ages
of 35 and 44, you're more likely than your male counterparts to
use a credit card for personal expenses (53% of women vs. 47% of
men). So these credit card companies target women of these age group
as they are likely to use credit card for purchases more than men.
Sophisticated consumers need to carefully review the costs and
benefits associated with these cards. Understand that credit cards
serve two basic purposes: one, a means of payment, and two, a source
of credit.
About a third of the credit card users pay the balance in full
every month, but the rest use it as is as an alternative method
of financing. However they forget that its a personal loan for which
they might be charged as high as 20%.
The interest rate on the credit card frequently wipes out the perks.
By the time you have made enough purchases to qualify for free flying
tickets or product discounts, you probably could have paid the price
straight out for what you've paid in interest charges.
Heres a credit debt management tip for spendthrift credit card
users: There is a strategy for playing one company against the other.
Use the incentive card for purchases and rack up the credits you
need for discounts on your heart's desire. If you can't pay the
balance in full, shift the balance to a lower rate card like the
GM card, which gives you an immediate 5% rebate for that kind of
rollover new business.
We hope you will read this article and act on it. All the very
best! To enroll in our debt management credit counseling program
please click
here!
