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STOP USING CREDIT CARDS
Not being in charge of a situation is a bad feeling,
especially when it comes to the amount of debt you have.
Taking control of your credit cards is one of the first
steps you can take to re-gaining control of your
finances; improving your financial health. Featured
below is information regarding the possible outcomes of
not using your credit card.
Improve your credit
score!
Every action you make with your credit card is
recorded by three major credit reporting bureaus in what
is known as your
credit report. These
actions include your payment history and account
activity including all mishaps. Also included is
information regarding every loan or credit application
that you have submitted as well all of your debt
information from all of your accounts, i.e. mortgages,
car loans, student loans, etc.. All of this data is then
amassed
into a
credit score.
Your credit score is a
strong indicator of how fiscally responsible you are
with paying your debts. In addition, your score will
determine whether or not you are approved for loans and
credit and how much you can borrow, at what rate. It has
also become very common for home and
auto insurance companies for pricing premiums.
Potential employers and landlords habitually use them to
check out candidates. Get more info on
who looks at credit reports. To find out what
your score is, you can
purchase your credit report. We feature a variety of
products that will allow you to gain instant access to
your credit report and score.
You'll will not abuse your budget resulting in more
money being saved!
Research has indicated that Americans who use credit
cards typically spend 15-25% more than they do when they
pay in cash instead. This additional spending will
likely result in you going over
budget. The trick is to use your credit card only
when you need to. This will grant you the convenience
plastic offers and the
pleasure of
saving money that you would have wasted
on impulse buying directly into the bank.
You'll be in a more content state of mind!
Almost half of all consumers that have some sort of debt
problem experience signs of depression. Credit card debt is the No. 1
reason. There are other ways that
debt hurts.
On the contrary, a recent study by
Roper Center
of Public Opinion Research concludes that
individuals that save only 5% of their income are
extremely
happier on the whole than those who don't save. There
are the people that probably
keep spending habits in control and pay their credit
card bills in full every month. As a result, they have
some money remaining for saving.
You won't put your home at risk!
When people get in over their head in excessive
credit card debt, they frequently will apply for a
home equity loan for consolidating payments at a
reduced interest rate. Being that home appreciation is
slowing, it is very likely that when those people go to
sell their homes, they will not make enough money to cover the
equity
debt. Even worse, an excessive amount of people that
utilize a home equity loan for consolidate existing
debts will then proceed to charge up their credit
cards again!
In conclusion...
To avoid excessive debt, it is important that you
learn how to
use credit cards wisely in order to fully enjoy the
advantages that credit cards offer. Otherwise, if
you are not a financially responsible person, you will
likely put yourself in a situation that will be very
hard to get out of.
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