There is no doubt that incurring credit card debt is quite easy. Needless to say, keeping it is
even easier. The problem about credit card has become so common that numerous credit
card owners these days are into dilemma. Are you among those? You surely would agree that
emerging out of credit card debt is difficult.
Fortunately, many experts are now openly advising plastic card users about the perils of
accumulating and maintaining credit card debts. It is not surprising that many consumers are
now more aware about this problem. It is quite interesting that even with that awareness; many
are still trapped into the unlikely situation. Here are some of the most recurring mistakes that
people tend to commit that lead to unwanted credit card debt.
Overusing the credit card
Credit card overuse is a sure way to pile up your credit card debt. This is because you usually
tend to not track your own card purchases. You may also tend to lose track of your budget
and your balance every month so that you may not be able to enjoy your interest free period.
Experts advise consumers not to use their cards for significant purchases if there are still unpaid
balances on those.
Ignoring the credit card debt
Some people choose to ignore credit card debts until there are serious reminders from the credit
card issuers. Remember that unsettled credit card balances would keep on accruing interest
and other charges while they last. Keep on ignoring your credit card debts and one day you
would be surprised at how much it has grown after some time.
Take note of the credit card cut off period so you could be aware of the dates you should repay
your purchases so as not to incur interest payments. At the same time, never forget your card
payment dues. Missing such payments could be considered as a mortal sin because if you do
so, penalties and other additional charges would certainly be imposed to you. This is one way to
make your credit card balance grow uncontrollably.
Misusing your balance transfer
Using the balance transfer feature of your credit card could be advantageous if you are into
debt consolidation. You may take advantage of the 0% or lower interest rates. However, beware
because some cards offer such perks only for a limited period. After that �honeymoon�
period, the balance transfer may suddenly assume higher interest rates, which could be another
cause for rapidly accumulating credit card debt.
Paying minimum required payment amount
Every month, your credit card statement would declare a minimal payment amount required
from you. It is always tempting to stick to the minimum. That is because you may use the
excess amount of cash you have to make more purchases. But it is not advisable to do so.
If you keep on doing it, you would tend to keep your credit card debt for a long time. And be
reminded that the longer your credit card debt stays, the costlier it gets because you would keep
on shouldering interest payments and other charges.
Andrew is a regular guest bloggers on financial blogs, where he offers advice on
how to consolidate debts. He has also published several articles on the issues with credit card debt