Take Control Of Your Credit Cards

2008 was the year when the economic condition in United States was going through a very difficult economic phase. The credit card delinquency rates in United States were on a high. Some reasons for the same we're mortgage crunch, rising energy cost and decreasing savings rate. In such hard times, people often depend on borrowing and hence rely heavily on credit card to pay their bills. Here are a few things to remember that will help credit card users to make their credit decisions smartly and take control of the finances.

Hard Truth about Credit
People prefer to use credit cards for various reasons. First, it removes the need to carry cash around for shopping. They also offer some lucrative bonus and reward programs enabling users to earn points that can be converted to monetary value and various other perks. It is also very helpful for emergency situations. But, the hard truth is if you can't pay in cash you can't really afford to make the purchase. Far too often people use the credit card and send far beyond their spending limit. And then starts a vicious circle of non payment of bills, high interest rates and accumulating debt.

Know the basics:
If you have a wad of cards, but are going through a low financial state, then you have to take control of the situation. Following are the things that you should pay attention to:

Yearly Fees - Check if the card on your wallet comes with a yearly fees. when you cant afford to pay for your necessities why pay a fees to keep the card at first place. the best thing to do in this situation is to cancel the card.

High Interest Rates - Have you ever thought of negotiating the interest rates charges with your credit card companies. Well, it is well worth a try. Some companies do lower their interest charges if you call.

Late Fees - Be sure to know about the late fees on your credit card if you are using it to make a purchase, you think you might not be able to pay back on time. Paying this fees as a penalty will burn a bigger hole in your pocket.

Over-the-Limit Fees - Make sure you don't cross the spending limit of your credit card as the credit card companies will impose a penalty fee on you if you do so. Check the details about it out before you apply for the card.

Bounced Check Fees - Ensure that the cheques you send to credit card company get clear as they do impose a bounced cheque fees as well. It is always advisable to avoid such charges.

Minimum Payments - Try to clear your credit card bills before interest rtes get levied in it. There is no point in buying something via credit card if you are unable to repay it on time. The addition interest charges are just a burden that keep on increasing.

Credit cards can be a great tool if used wisely. Choose your credit cards wisely and use them wisely for a healthy financial position.