Credit Card Quick

Learn How to Control Debt and Enjoy Credit Card Spending

Introduction

If you are still struggling to develop good spending habits with your credit cards, but you don’t know how to start or where to turn the consider the following tips for developing a responsible, healthy attitude towards credit cards.

These tips will allow you to maintain control over your debts, will empower you, and will certainly help to build your FICO score so when you are ready to make a purchase you will be accepted and will be given the most competitive interest rate.

Here are some ideas on getting started:

• Make a budget and stick to it – Many times, we end up in credit card debt because our paychecks don’t stretch as far as we want them to. It is because of this that the most important thing you can do to improve your credit card management skills is to write down a comprehensive, realistic budget and stick to it. Write down all expenditures, as well, so you can clearly see where you paycheck goes each month.
• Recognize that your self worth shouldn’t be directly associated with buying new things – Buying new things may make you happy for a moment, but the reality is that shopping is not the key to happiness. Try this: force yourself to go “cold turkey” for one month and only purchase the essentials, such as food and gasoline. After the end of the month, when you still have money in your pocket, recheck your feelings. You may very well begin to rethink your spending habits.
• Resist Temptation – Resist the urge to spend on a whim. Stop impulse spending and this will ensure that you do not possess buyers remorse after purchasing non essentials.
• Consider all of the other things that make you happy and make a point to revisit them – If you’ve enjoyed swimming but haven’t found the time to do it, find a local YMCA and start swimming again. Consider joining a book club or taking a yoga class. Rediscover your passions or find a new one! The bottom line is that all of your happiness should not be tied to shopping.

How to Reward yourself with Responsible Credit Card Spending

Introduction

Do you want to make the change to responsible credit card spending, but you simply can’t find one good reason to stop spending recklessly on your credit card? After all, you are still able to pay the minimum payments on your credit card, so there’s no problem, right?

Well, not so fast. Your manageable credit card habit may be controllable now, but what will your situation look like in the future? Consider whether you would be able to pay your credit card bills if you lost your job tomorrow. Also, consider how long you can continue to pay only the minimum payments on your credit cards before the cards are maxed and the finance charges begin to take over. Finally, consider how many years it will take to pay off just one of your credit cards if you continue to pay only the minimum payment.

Although many of us don’t want to face these realities, the fact of the matter is that we must deal with them head on if we expect to learn from our mistakes and move forward toward a more financially responsible future.

Better yet, start rewarding yourself each time you make a responsible credit card decision. Here are a few tips to get you started towards your financial goals:

• Each time you pay for something in cash instead of credit, calculate the amount of interest you would have paid on that items and take that money and put it into a special savings account. Stay diligent and continue to do this until you have worked up to a specific savings goal. Then, take your saved money and purchase something special for yourself!
• Instead of paying just the minimum payment on your card each month, strive to put at least $20 to $50 more. You will be surprised to see how much quicker your balance shrinks just by putting a little more money towards it each month.
• After you have paid off your credit card, take the money that you used to spend on monthly payments and instead direct it into a savings account and watch your savings grow!

Along with New Credit Card Laws comes Consumer Responsibility

News

The government has stepped in and curbed the fees, rates and tactics that credit card companies can throw at consumers. But where is the all-important consumer responsibility?

The new credit card legislation, set to go into effect in February, is laden with plenty of rules and regulations that credit card companies must follow. From restricting college students’ access to credit cards to changing rules regarding interest rake hikes and due dates, the law is designed to help consumers better manage their debt.

Recognizing Personal Responsibility

However, don’t expect the government (or the credit card companies) to take the place of your personal responsibility as a consumer. If the credit card company’s terms, conditions, rates and fees are now transparent then the responsibility lies solely on the consumer. In other words, there’s not much more the government can do to help you responsibly manage your money.

Credit card reform is only half of the equation; consumers must be other half.

The Importance of Learning from Past Mistakes

The credit crisis and subsequent recession has taught us all many lessons. Many consumers are now rethinking their once-impulse purchases; people are making budgets and sticking to them; and still many people are simply saving more and spending less.

If anything has come out of credit card reform is that everyone needs to be accountable for their actions. The bottom line is that it is ultimately your decision to spend or not to spend on your credit card. You have the final say and you – and only you – are left with the credit card bill at the end of the month.

For many consumers, this is a great time to reevaluate their needs, pay off their credit cards earlier than later, and simply take a good, hard look at their past spending habits so they can begin changing them for a better tomorrow.

Take this opportunity to review your credit card and spending decisions and make positive changes. Develop a realistic budget and stick to it; reevaluate your credit card needs and ditch the ones that simply are not working for you anymore; find a great credit card with competitive rates and excellent terms and conditions; and make a commitment to pay your card in full, every month, without exception.

Here’s to a healthier 2010!

Before you Start your Holiday Shopping, Read this!

Introduction

The holidays are upon once again and the question is: are you prepared?  Sure, you think. I’ve made my list and checked it twice. But is there more to planning your holiday shopping than just making a list?

If you want to keep your credit card spending in check, and keep credit card thieves in check, then you bet.

There are plenty of things you need to keep in mind before you head out the door to get your holiday shopping started:

• Make a budget and stick to it. The holiday season, in particular, is one time of the year when overspending and impulsive purchases are common. There are plenty of deals, sales and specials that are there to great you around every corner, so having a budget – and sticking to it – is crucial for keeping your credit card bills to a minimum. Without a budget you may be tempted to get carried away with purchases and, before you know it, you have spent more money than you can reasonably and realistically pay back.
• Keep you credit card close at hand. The holiday season is a prime season for credit card thieves, as stores are packed and consumers’ defenses are down. In particular, keep your credit cards secure in a purse or wallet, and make sure they are not easily accessible to a pick-pocket. Avoid using backpack-style purses, as these are often quite easy for a thief to gain access to, even while it’s on your back! And if you carry your wallet in your back pocket, consider moving it to a front pocket instead. In addition, be cautious of any retailer that needs to take your card out of your sight to complete a transaction, as this can often indicate a card skimming scheme.
• Be cautious about using retail credit cards. Sure, they may seem tempting, and can be opened and used within a matter of minutes, but think twice before using a store credit card. Often times, they come with hefty fees and even heftier interest rates, so steer clear of them, when possible, and instead use your fixed, low-interest credit card.

Credit Cards now Encourage Responsible Spending

News

It seems rather ironic, doesn’t it? Credit cards, after years of encouraging credit card spending – often irresponsibly – are now encouraging more responsible behavior and helping consumers better manage their debt.

Case in point: JCPMorgan Chase recently unveiled a new credit card, called Blueprint, which is designed to help customers handle their debt.  This card enables customers to better manage and track their purchases, and helps them pay off their debt by making the process a bit more practical and manageable.

Features of Chase’s Blueprint

One of the key features of the Blueprint credit card includes the ability to avoid interest charges on everyday purchases, such as food and gas. Although consumers would continue to pay interest on other types of charges, everyday purchases would be exempt from interest charges for a certain period of time.

JPMorgan Chase’s Blueprint will also enable customers to design payment plans to assist them when paying down their debt, and will also allow them to better track their spending. Customers of the Blueprint card simply choose their everyday categories in advance to enjoy an interest-free grace period on certain purchases.

The new Blueprint card is available to more than 20 million Chase customers.

Other Credit Card Companies hit the Bandwagon

A number of other credit card companies have also released similar credit cards with features such as debt-management tools and online budgeting tools. Wells Fargo and Discover have both introduced cards like this.

American Express, meanwhile, is pushing its credit card terms to consumers – which includes paying the card in full every month – as the right card for these tough, economic times.

It’s no wonder that credit card companies have finally caught onto the serious credit card problems plaguing millions of consumers in the United States. With credit card defaults and delinquencies soaring, credit card companies must find ways to help consumers better manage their debt.

This new era of “transparent” credit cards is sure to help consumers who are finding it difficult to manage their debt and maintain a strong credit score.

Now, the question is, during this difficult period of time, are consumers willing to trust that credit card companies are there to help them and to not put them further into debt?

Only time will tell.