When the economy suffers as it is doing these days the banks also feel the effects too. Each and every day we hear reports on the news about the credit crunch reaching the banks and the generous credit limits previously extended to their customers are fast becoming a thing of the past.
If you miss a payment or even pay it a few days late, in many cases your APR will take a hike overnight and the fact that you have kept your account in order for years does not seem to come into the equation. At this point, instead of taking credit advice, many folk opt make the minimum payment on one card by taking a cash advance from another card. Although it is handy to be able to do this, such advances have a transaction fee applied to them, so in reality you are only getting yourself further into debt. If you continue in this mode of borrowing you will soon find yourself in a downward spiral. When your credit rating has dropped, and your rates have gone up having all this mess to sort out will become a nightmare.
While this is not a pretty picture, your need for credit advice is becoming apparent. You know you can't continue this way, but what can you do?
If you were to sit down with your kids and try to give them your best credit advice, what would you say? You've been there, done that, and the credit advice you give them will be the voice of experience. Learn to follow your own advice. Here are the cardinal rules of credit.
1. If you cannot afford it - don't buy it. Use your credit cards to buy clothing, gasoline and other regular expenditures for which you have the cash in hand, and this way you will set up and maintain a good credit history by paying off your cards in full each month.
2. From time to time you will have to pay out for emergencies. For example, you may need some urgent dental treatment where your insurance does not cover the full cost. This is the sort of thing you can use your credit card for as long as you do so responsibly. Make adjustments to your monthly budget and get this expense paid off as soon as you can. Although it is tempting to simply pay the minimum amount, this means you will take much longer to pay off this unexpected debt and with the interest incurred, the dentistry ends up costing you a small fortune.
3.Almost everyone ignores this prudent bit of credit advice: Do not finance holiday shopping on a credit card! Sure, you want your family to enjoy the great gifts you can put on a credit card. However, you don't want them to suffer six months down the road when you're unable to pay for essentials.
4.No matter how tight your budget is, almost everyone can afford to put aside $10 a week in a savings account. Not much, but in a year's time, you can pay cash for that root canal!
The top and bottom of the best credit advice is to live within your means and remember to set up a savings plan, however small so you can face whatever financial strains life throws your way without getting into debt. - 15224
If you miss a payment or even pay it a few days late, in many cases your APR will take a hike overnight and the fact that you have kept your account in order for years does not seem to come into the equation. At this point, instead of taking credit advice, many folk opt make the minimum payment on one card by taking a cash advance from another card. Although it is handy to be able to do this, such advances have a transaction fee applied to them, so in reality you are only getting yourself further into debt. If you continue in this mode of borrowing you will soon find yourself in a downward spiral. When your credit rating has dropped, and your rates have gone up having all this mess to sort out will become a nightmare.
While this is not a pretty picture, your need for credit advice is becoming apparent. You know you can't continue this way, but what can you do?
If you were to sit down with your kids and try to give them your best credit advice, what would you say? You've been there, done that, and the credit advice you give them will be the voice of experience. Learn to follow your own advice. Here are the cardinal rules of credit.
1. If you cannot afford it - don't buy it. Use your credit cards to buy clothing, gasoline and other regular expenditures for which you have the cash in hand, and this way you will set up and maintain a good credit history by paying off your cards in full each month.
2. From time to time you will have to pay out for emergencies. For example, you may need some urgent dental treatment where your insurance does not cover the full cost. This is the sort of thing you can use your credit card for as long as you do so responsibly. Make adjustments to your monthly budget and get this expense paid off as soon as you can. Although it is tempting to simply pay the minimum amount, this means you will take much longer to pay off this unexpected debt and with the interest incurred, the dentistry ends up costing you a small fortune.
3.Almost everyone ignores this prudent bit of credit advice: Do not finance holiday shopping on a credit card! Sure, you want your family to enjoy the great gifts you can put on a credit card. However, you don't want them to suffer six months down the road when you're unable to pay for essentials.
4.No matter how tight your budget is, almost everyone can afford to put aside $10 a week in a savings account. Not much, but in a year's time, you can pay cash for that root canal!
The top and bottom of the best credit advice is to live within your means and remember to set up a savings plan, however small so you can face whatever financial strains life throws your way without getting into debt. - 15224
About the Author:
Andrey Breit is a credit advisor and really well-known for his expertise on credit and financial products. If you like this article you will surely love his article on fully free credit report or if you want more information on credit, go to www.solutionforcredit.com.
