The past holidays may have tipped you off your budget- with
all the parties to prepare and all the gifts to give. Are
you ready to face the new year with an excellent credit
standing? Or are you one of those consumers who are having
trouble paying off their credit card charges from their
account?
A telephone survey conducted on December 6-9, 2007 by the
Consumer Reports National Research Center revealed that
only 65% of credit card holders intend to pay off their
balances on the first month of 2008. The rest plan to carry
over balances on their account on to the next two or three
months. This could mean paying for additional interest rate
unless your credit card has a 0% interest offer.
If you've spent a lot during the holidays, what can you do
to take control of your debts and avoid further problems?
Here are some tips to consider:
Transfer your high-rate balances. If you're credit card
doesn't have a 0% interest rate offer, then transfer your
balances to a credit card that does. Usually, the zero
interest rate is an introductory promo that lasts from 6
months to a year depending on the issuer. By transferring
your balances over, you can afford to pay off your dues in
installments without incurring interest.
Don't be content with submitting only the minimum payment.
As you prolong your credit card debts, you increase your
risk of getting stuck to more debts.
Freeze the use of your credit cards. Since you're still
paying for the charges you made over the holidays, fight
the temptation to charge anything new on those cards until
the holiday debt is paid off. Concentrate on bringing your
credit card debt down to $0.
Cut back on your costs. In order to pay off your credit
card balances in full, it may be necessary to cut back on
your spending. Examine your monthly expenses and see
whether it's possible for you to minimize your costs. You
may need to make some sacrifices but if it can help you
bounce back from your debts, then those sacrifices are
definitely worth it.
Check your credit report. It's good to start the year
right. Order a copy of your credit report and make sure
that there were no unauthorized charges made in your
account. Cases of credit card fraud and ID theft are at a
high especially during the holiday seasons so you want to
make sure that you're not one of the unlucky ones who has
been victimized. In case there are incorrect accounts call
your creditors immediately and the three major credit
bureaus to dispute these accounts.
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Liz Roberts is a loan consultant with NewHorizon Finance
and has been providing consumers and business owners with
financing since 1989. Join our mailing list for FREE tips
on building and repairing your credit . We also have a list
of recommended bad credit credit cards.
http://www.newhorizon.org/Info/unsecured.htm
Copyright 2008
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