There's no doubt that the credit card is a common culprit in the destruction of our personal finance. However, we mustn't let it control us. We are ultimately in control of our personal destinies and that includes of course our financial destiny. If you feel that your credit card is taking control of your life, then reading the tips contained in this article will do wonders for you.
Ratios, Ratios, Ratios
What do I mean by ratios? By this, I am referring to your debt-to-income ratio and the need to constantly monitor this. Of course, the most ideal ratio would be 0, however a healthy and more realistic ratio that everyone should aim for is 15% or less of your after-tax income. You might be now thinking that such a ratio is too low or unrealistic, but keep in mind that if this ratio exceeds 15%, then you credit card is indeed controlling your life. Make a stand and take action.
You Make The Rules
If you don't feel in control of your credit card, then it's probably because you're playing by the bank's rules. Your bank keeps sending you statements highlighting the "minimum amount due" when all it wants to ensure is that you never fully pay off that debt and keep accumulating interest for the rest of your adult life. You're better off paying off the whole debt as soon as possible without having to pay potentially thousands of dollars in interest over many years.
It Doesn't Hurt To Ask
Don't ever forget that you are the customer and that your credit card company would do anything to keep you. Especially given these tough economic times. You now have more leverage than ever before to ask for lower interest rates and lower fees. All you have to do is ask or threaten to leave your lender for a rival company. It's as easy as that.
My only hope is that this article will greatly assist you in taking control of your credit cards for the sake of your personal finance and financial future.