Credit is Great, But Credit Card Debt Isn't

Credit cards are not only a near necessity these days but seem, in some cases to have become not only useful but seriously addictive.

Day by day we see an endless parade of intriguing gadgets, beautiful clothes, expensive cars, dream lifestyles.  And plastic - plastic can make it all so easy.

Maybe I don't have any cash, but I've got a pocket full of credit cards.  I can have it now, almost anything. But there's a problem.  All those friendly lenders, who were so happy to give me yet another card, get seriously upset if I can't make my payments.  Some go so far as to jack the rates up to 25% or more.

Credit card debt is all over the place.  Tempted by how simple it is and by how desirable the products seem, it's awfully easy to get into a mess.  Multiple cards make it even easier, as do the 0 credit card rates offered to entice you to get one more card.  And when the 0 rate disappears - and the multiple credit card bills come in - and the income just can't stretch anymore to cover?

It's usually not hopeless. Credit card debt consolidation loans, home equity loans, debt restructuring, credit card consolidation, getting serious about your expenditures - all these can help create a debt free situation, eventually.  But before you do any of these things you need to understand what each involves and you need to do some thinkng and planning.

If you have bad credit - a bad credit history or bad credit report - you can rebuild your credit, but it takes time.  There are NO instant solutions unless your bad credit is based on errors in your credit report.

If you are just starting out, learn as much as you can about credit cards, credit card fees and interest rates, reward programs and so on.  You have to be ruthlessly honest with yourself about your income, what you need a credit card for and how you're going to use it.  Once you get yourself into credit card debt, you may wish you never got a card. Being responsible about how you use your card is what will help build your credit history for later major purchases.  For the student, a student credit card is a great way to begin building credit.  But if you're irresponsible, it can be a disaster.

Sometimes we want too much and have too little control over our impulses to buy so we whip out the plastic with a smile and avoid thinking about the inevitable - when the credit card bills arrive.  One reason for this site is that it happened to me once.  I was almost certainly certifiably whacko at the time, but I had the plastic and a nice high limit and I really wanted the high end audio components (with the awesome, but equally expensive rack mount) and the very unusual hand made furniture, and on and on.  I was then busy working out a totally insane scheme for moving the balance from card to card to card to card.  Needless to say none of the crackpot ideas got me out of that hole, but a debt consolidation loan at a very low interest rate did.  Never again. 

Hard as it may seem to believe with all those happy happy ads, you can destroy your life with credit cards.  But, if you understand them, know your own limits (which are rarely as high as the limits on your cards), and use your credit cards with sense, they can be extremely useful and make your life simpler and even safer.

There's lots of information here ranging from material on student credit cards and getting credit, types of cards and the advantages (and disadvantages) of different ones, ideas about how to control your expenditures, overcome a bad credit history, how to do credit card consolidation, find credit counseling or work out a credit card debt consolidatioon loan.  More articles are added regularly, so come back and use our information to create a better life for yourself and your family.       

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