Thursday, September 4, 2008

Carrying a Balance on Your Credit Card?

If you really want to know what it feels duty on board the balance on your credit card for one month in succession. You will be well on your way to be poor. Let's see how it happens, how to get rid of this kind of crippling debt and how to avoid in the future.

One of the major problems of credit cards because of your costs mean that led to implement the balance forward. In short, it goes like this, you're buying something you expect to have the money for several weeks. In some reason, that money does not appear. Unfortunately, the bill so far. To make the minimum payment, and now huge interest rates and penalty kick in the next bill, much higher. This cycle can continue in many families for many years. We continue to buy and never leave the cycle of debt.

Depending on your credit cards, in particular, the rules can change. Starting from zero balance (beautiful dream for some of us), we buy something and get a "grace period". A few weeks when there is no interest charged on the purchase. It's really an interest-free loan. Is not the pleasure of them. Not obolschaet you, they know exactly what they are doing.

If you violate this grace period, or does not pay when you are supposed to charge They noted with interest the date of purchase. No grace period at all, until you carry a balance, before once a month. Or, put another way, if you do not pay any money that you have the card company each month, they still charge very high interest rates. This interest is, that is, you'll pay interest on interest. This is a bad place to be.

What can you do? My normal line cards and reduce their use of funds. If this is not fair to do it for you, look into debt consolidation. This is where you have used all their debts in the basket with a low interest rate. You save money on interest and used to repay debt more rapidly. If you want to retire one day you should have zero credit card debt every month.

Easy path was not part of the duty cycle is to implement a reward-punishment. If you get zero balance in your credit card, put $ 20-50 in mind that you can spend what you want. If you carry a balance forward, that your cable TV has left over 2 months, or something so got for you. Talk is cheap, it is real, and you make it a reality. Immediately you are taking steps to reduce your debt, credit card allows you to be a big step closer to be rich. Be smart to be rich.

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