The first step towards controlling your credit card debt is to limit your credit card use. Even though you get hundreds of credit card offers, you do not need hundreds of credit cards. One credit card is usually sufficient; if you pick a credit card that is not accepted every where but has a low APR, you may want to get another more commonly accepted credit card. However, there really is no reason to have more than two credit cards. The more credit cards you have, the more difficult it is to keep track of your credit card debt. With lots of different payments to make, you may forget one every once in a while. Plus, the more spread out your debt is, the less oppressive it can seem; you never have one huge debt, just a bunch of small ones. As a result, you may acquire more total debt.
Of course, even with only one or two credit cards, it is still quite easy to accrue a large debt. Do not use your credit card like it’s free money; it isn’t. Only use your credit cards for purchases that you absolutely need to make. And, if you have the option of using cash, a check, or a debit card – in other words, money that you actually have – do. That way, you won’t have to pay interest.
If you know that you are prone to using your credit card to much, set a monthly limit for yourself. Basically, you are planning your credit finances just like you plan your regular finances. Figure out how much money you can afford to put on your card each month, and do not exceed that amount unless there is a true emergency. This way, you are forcing yourself not to think about credit as a limitless stream of money from which you can take as much as you want.
Get a Great Card
Credit card companies want your business; make them compete for it. Do not simply pick the first credit card that is offered to you. Compare your options carefully. Look for a permanently low APR, not just a low introductory rate. Avoid cards that have annual and other types of fees. Perks, like air miles, are good if you know that you will actually use them, but a low APR really is more important.
If you are currently paying a high APR, call your credit card company and ask them to lower it. You might have to stay on the phone for a while, and you will probably have to ask to speak to the manager, but most cards will lower your APR rather than lose your business. Remember, they need you.