September 25, 2009
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Credit Card Ground Rules, Pt.4
Don't do it!Credit card abuse: One very critical mistake is using a credit card to live off. Big mistake. Although we're going through some very trying times right with the despicable economy and sometimes, just paying the rent becomes an emergency, we must not become complacent and assume it can last for very long. We must always be mindful to the fact that credit cards will never be an extension of a paycheck. Every time we place a substantial charge on a credit card, we must make a mental (or physical one) that this needs a plan to pay it off soon. Plan a target date and prepare to give some things up in the mean so that you've put that money away safely to pay the debt as soon as practical. Don't make the grave mistake of building long-standing debt.
Don't be late: This will start dominos tumbling like you don't wanna know. Terrible consequences can come quickly which will change your lifestyle dramatically. It's no fun and so unnecessary. Build safety checks which will force you to remember well in advance of when a payment is due. Monthly payments should be made as soon as practicable, again. When you consider the risk, you'll almost certainly agree that sending payments in early is a small price to pay for this security.
Don't ever go over your credit limit: Don't even come close. Most major credit card lenders offer the convenience of ‘alerts'. These can be e-mailed, texted of delivered by phone. I use all three. Another safeguard (if it's offered by your issuer) is to withhold the option of allowing an overcharge to go through. Call your provider and direct them to reject any charges that would exceed your credit limit. Most people don't realize that this is how the $35 overcharge fee came into existence. It started out as an elected option to pay this fee in order not to be embarrassed at the counter when a card was rejected for "NSF". The banks found it so lucrative that they made it the standard. Swallow your pride and ask the bank to just reject that charge that will exceed your limit.