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The editors own experience: When I obtained my first credit card, I felt like somebody important one I remember. With a credit card I could and would buy all type of things. When it arrived at my house I though of all the purchases I would make and I soon purchased lots of items with zero interest on these purchases. My wife asked me “ How did you pay for all that you buy? I answered: “I did not pay it. I loaded it to the credit card.
Eventually the time period of my zero interest passed and I had to settle the credit card or the bank would charge me interest on the amount on the card. Then I realized everything what I had to pay, and this was not pleasant.
I got into debt beyond my means as I spent money I did not have and did not consider how I would repay the credit I as borrowing.
Most people do not need more than two or three credit cards The cards of banks (Visa, MasterCard and American Express) are better than those of the stores because they have lower rates generally and are accepted in more places. I went beyond this and applied for all I could. This was a big mistake as when it came time to repay the balances as interest was being charged I could not then swap to a new card, as they would not accept me for credit.
I obtained some good advice such as to pay the high interests cards before the low interest cards. Payment more than the minimum will reduce the balance on the credit card much quicker than paying the minimum that the credit card provider will accept. If you have debts in several cards give priority to which has higher interest charged, and soon you are paying in order until eliminating those that have the biggest rates on interest on the credit card.
I now realise that families whom they spend in cards more of 15% of their net income on credit cards or store cards must consider that pattern like a signal of a credit problem.
Consumers can find advisors by means of several organizations: National for Foundation Credit Counselling, www.nfcc.org, or Association of Independent Consumer Credit Counselling Agencies AT www.aiccca.org.