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Credit Cards ? This word really takes off my sleep. Of late, I have some amount outstanding on my card and I need to clear it before its due date. Or else, I would be required to count that the lump sum interest amount. Many people resort to credit cards to soothe their life with worldly luxuries. Luxuries do give peace, but the debts make sure that you lose that peace and sleep over them. Credit card is supposedly the most expensive credit facility that any one avails, after a mortgage loan. Credit card companies roll out those enticing offers out in the market that a normal salaried person is wooed to get it in his pocket. And why not? When you know that you can buy the latest Nokia model just with another swipe, then you would not like to resist yourself from opting for it. Many people are completely unaware about the hidden costs charged by the credit card companies. If you feel that paying the minimum amount dues on your card will get you debt free, then you are wrong. The fact is that unless you pay the total used credit, the companies charge you a hefty interest on the complete amount. So even when you pay the minimum due amount, you would still see a fat interest charged in the forthcoming month?s statement. And won?t you be surprised to know that the interest can be from 25-40% per annum! Another fascinating, yet tricky feature promoted by companies is ?cash advances?. Credit cards allow you to withdraw cash on your card account up to a certain limit decided by the company. But, little did you know the bad effects of this. You pay a higher amount of interest on these advances, which proves to be even more expensive than any bank loan! And what happens with such high multiplying debts? Your income gets limited and consequently you cannot afford to settle the card dues completely by the end of each month. This causes sheer multiplication of debts and you reach a stage where you see the interest being more than your principal! Moreover, it all affects your credit scores. You get a bad credit history report and your scores wouldn?t allow you to avail the required credit in the future, when you need it the most. If you intend to have a good credit score, you need to use the credit card wisely. I have seen people carrying five to six credit cards at a time. There is no such need to have those many cards, when you can satisfy your needs with just one or two. So what do you do if you are already in pile of credit card debt? Firstly, stop using your card for few months and opt to go for a credit card debt settlement! Yes, this will save you from building up any principal dues. Then, budget your monthly income in such a way that you would not require to take the help of your credit card to meet the expenses of those additional comforts. Getting out of credit card debts is getting a peaceful sleep and leading a stress free life. So think again before you swipe your card! Andy Eaton is ?21,040.57 in debt, read his personal blog and discover his step-by-step plan for why and how he is eliminating his debt. His journey to debt free is going to happen quickly for him as he is using a plan. Follow his amazing story at http://www.sick2debt.com
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