4 Ways to Keeping Credit Card Debt Manageable

The average US household has over $16,000 in credit card debt and 3.5 cards. Without great attention to detail that total debt could spiral out of control and be a very large burden for many years. However, there are some simple things consumers can do to ensure this does not happen

It's vital to keep tabs on payments and balances. It's not unheard of for lenders to hold a payment and not credit it to the account while the borrower thinks it has been credited. This can happen if payments are made by check and/or sent in the mail. One sure way to avoid this is to make payments online using a checking account debit card. When the consumer assumes a payment has been made and makes more purchases they can often exceed their credit limit and suffer fees and penalties.

Knowing the terms of any given card is also critical. Some cards begin charging interest the minute the purchase is made while others have between 20 and 30 day grace periods. Try to use a card that has such a grace period and ensure the payment gets credited on or before the due date. This is the best way to avoid paying interest on purchases and effectively having some interest free credit cards.

Consolidating multiple cards onto a single card with fixed rate interest is another great way to keep a handle on card debt. Using a zero balance transfer credit card can be doubly effective in helping borrowers reduce debt. Taking advantage of an offer that has 18 or 21 months of zero interest can help a consumer pay off that debt in much less time and save significant money spent on interest.

Using a rewards card can be an excellent way to actually make money on a credit card. People who like to travel can reap benefits on a card that offers flyer points or lodging credits. If the rewards card is used to buy items that were going to be bought anyway, such as groceries and gasoline, and the purchases can be paid off in a timely manner, then this can be a great way to reward yourself.

There are many great ways to keep credit card debt under control and these are just 4 simple ideas. The key to managing any sort of debt is to not incur any more than a budget can balance. Leveraging credit cards can be an excellent way build credit and gain rewards if they are used wisely.

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