Avoid Credit Card
Wealth Builders rarely use credit
cards. When they do, they pay off their balances every month. When a credit
card balance is not paid off monthly, it means paying interest—often 20
percent or more a year—on everything purchased. So think of credit card
debt as a high-interest loan.
|Do you need to reduce your credit card debt? Here are some suggestions.
- Pay cash.
- Set a monthly limit on charging, and keep a written record
so you don't exceed that amount. (Remember your daily
expense sheet? Use it to keep track.)
- Limit the number of credit cards you have. Cut up all but
one of your cards. Stash that one out of sight, and use it only
- Choose the card with the lowest interest rate and no annual
fee, but beware of low introductory interest rates offered by
mail. These rates often skyrocket after the first few months.
- Do not apply for credit cards to get a free gift or a discount
on a purchase.
- Steer clear of blank checks that financial services companies
send you. These checks are cash advances that may carry a higher
interest rate than typical charges.
- Pay bills on time to avoid late charges.