Thursday, August 20, 2009

Credit Card Relief

People who use credit cards, which is just about everyone in the US, will get some relief from the credit card companies today, who have to comply with some new rules:



While these new rules will certainly help some people, a better way is to help yourself. Be in control of your credit cards. If you pay your balances off each month, the interest rate they charge doesn't matter. In a post-911 world credit cards are necessary to buy airline tickets, rent cars, and reserve hotel rooms. While debit cards can accomplish this, having your money in your bank account reserved can cause temporary problems and may cause a rash of overdraft fees. Also, you don't have the same protection from billing issues or grievances with debit cards as you do with credit cards. So what should you do? Pay off your credit card debt as soon as possible and only charge on your cards what you have in the bank to pay off each month. Make sure you have a no annual fee card and don't carry more than 2 cards in your wallet or purse. If you really want to get in control of your spending, start using more cash. Some retail stores and vendors will now give you a cash discount for not using your credit card. That's a win-win. Recent studies suggest that Americans are now saving more and paying down their debt. This is a good thing and a silver lining from the recession that many people have discovered.

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