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Credit cards are a big part of our lives in a number of different ways. We use it for shopping for various transactions online and offline, for bulk purchases, for large scale buying and many other reasons. This plastic card has changed how we function and made monetary transactions so much easier. Most of us would find it very difficult to live without this very versatile tool that has become a huge part of our daily life. We use credit cards for a number of purposes each day and often use different credit cards at different locations. Based on certain features or rewards with certain cards we use them differently each time.
The biggest mistake people make is to have too many cards being used at the same time. We may use one card which gives us rewards for groceries at one location like Target or K mart and use another on our gas miles, yet another card might have reward points on air miles which we regularly bill for our travel expenditures.
What we don`t realize until alter is the important fact that each of these cards are expensive, have high APR and annual fees and to keep a track of the various payments on every single one can be a difficult process in itself. So we need to be sure we have means of paying all the minimum balance due on the cards on the set dates. In case, a payment is missed it often results in one too many problems like accumulating interest rates and penalty fees. Soon in no time you are going to have a large balance to close and then find that you are in debt.
This situation could have been avoided. Cards are useful but they must be used with care. Splurging on a credit now can feel good, but having to pay it off and struggling with fees over fees will not be so pleasant. When you use credit, be sure your credit to debit ratio is reasonable such that you can afford the payments you need to make every month in addition to your other financial commitments like a home loan.
Make sure you do not end up on the defaulters list, if you cannot close the whole balance in one shot at least make a minimum required to avoid the interests accumulating. Paying the whole balance at one go may not be a very plausible solution, but neither is a high APR, you could think of switching all your balance over to a card which can give you lower interest rates and make things easier by paying in one place each time.
Credit card debt is a problem many other citizens like you have, it can be dealt with if you can make a commitment to closing your debts and not starting new ones. That means no to impulse shopping and making sure you do not miss payments. Plus if you get bad credit, your chances of getting credit again are lowered! Use your cards right!