Manage Your Credit Card or You Will be Singing he Bad Debt Blue
A Credit Article Contributed by Annie Bauers
My Friend Went into So Much Debt with Her Credit Card She Had to Sell Her Car Can This Happen?
Yes you can run up serious debt with a credit card. Remember that you not only owe what you spent you owe interest on that balance too. If you make the minimum payment every month your balance does not go down that much because most of your payment went toward interest. If you charge your credit card or all of them if you have more, to the maximum limit you will pay more interest and even though your payments on the credit card will be more and your balance will remain close to the same.
The moral of this sad story is to manage your credit cards wisely. Do not over spend or you will find yourself in debt that you can't get out of.
Can a Credit Card Ruin My Credit?
Yes a credit card can ruin your credit if it is not managed correctly. If you over spend and don't make your payments on time you will find yourself in trouble and your credit score will be damaged. However, you can use a credit score to build good credit. If you don't over spend and make all of your payments on time your credit score will get higher and your credit will be even better.
Unfortunately as quickly as you have Built good credit you can ruin it and you can't repair the damage so quickly. So the important thing to remember is to make your payments on time. That is the single most important thing you can ever do for your credit score. If you don't over spend you will find it easier to make your monthly payments because they will be much lower. Don't view your credit card as a way to ruin your credit think of it as a way to build it then do it!
What If I Get into Trouble with My Credit Card?
If you feel you are going to be in trouble making your payment don't sit around and hope your will win the lottery before the payment is due. If you do win congratulations if you don't you're going to be in trouble. You should call the credit card company that isued your card and let them know you are anticipating trouble. it depends on the credit card company and your history with them they might give you a short extension or it is possible you will have to make two payments at the same time.
This is not always the case but it is worth a try. It is important you never get in the situation where you can't make your payments. Bu5t things do happen and sometimes there is nothing you can do to avoid a situation and you are going to be late on your credit card payments. Before you get a credit card have some money in your savings for a situation just like this.
