September 23, 2009
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Lousy Credit Card?, Pt.2
A word of warning.In most cases, the key to resolving bad credit card terms is simply to scout around and find a credit card with better terms. Always remember, though, that the new vogue is to keep credit card debt at a low level.
Credit cards, in and of themselves, are very handy. They provide the means of not having to carry extra cash, make an excellent paper trail and afford much better protection over debit cards and cash in so many ways. The down side, of course, that so many have had to learn the hard way is that, without prudent spending habits, it very easy to get buried in unmanageable debt. If you’re one of those unfortunates, a better rout may be to secure a new credit card with a very low credit limit (shouldn’t be vary hard to do).
If you can’t control spending, it may be best to just stay with a debit card (to protect you from you. As with the credit card, there is a similar safeguard for you in this case also. Contact the band who issued the debit card and direct them to remove over-draft protection on your account so that when the account runs dry, the card ceases to work. Interest rates for overdraft can be steep and the bank is probably charging you a fee for it anyway.
Incidentally, you can do similar with most credit cards. Ask your issuing bank to simply not allow over charging. Again, you are paying dearly for the ability to over charge in steep penalties and much higher interest. This was originally devised as a convenience to some customers who were embarrassed at the counter when their card was rejected. Those who could easily cover the debt would simply pay the fee and allow the over-charge to go through. But, if you’re already struggling with debt, the last thing you need is to loaded down with steep penalties and way-high interest rates that will follow.