For millions of Americans, the real holiday hangover hits when the credit card bill arrives. After springing for airline tickets, gifts for everyone from parents to friends to coworkers, a new outfit and some bottles of bubbly to ring in the New Year, few people can afford to pay off their full balance in January. In fact, a recent poll conducted by Consumer Reports found that about 12 million Americans had not paid off the previous year’s holiday shopping bills. Wow! Here are five tips to keep you from falling in the holiday debt trap again.
As shoppers gear up for Black Friday and Cyber Monday, we’d like to offer you a story on how they can use their credit cards wisely and keep their spending in check.
The majority of Americans are going to use their credit cards this holiday season:
- more than half will be shopping online where credit cards are the primary means of payment
- half of us will use our best credit cards for in-store purchases
The temptation to sign up for a retailer’s promotional credit card to score a better deal is high, but what shoppers don’t know is not all cards are equal— many of the promotional interest rates and rewards won’t match the long-term benefits of non-seasonal cards.
This is a guest post from Mr Credit Card from www.askmrcreditcard.com. Mr Credit Card reviews credit cards and knows the ins and outs of the industry. In this post, he is going to discuss some sound principals in managing your credit cards. Mr Credit Card has compiled a list of the best credit cards available. If you are looking to apply for a credit card, you can head over to his site to do your research.
Firstly, I would like to thank Jeff for giving me the opportunity to write this post. Managing and using credit cards wisely is all part of sound financial management but it seldom gets discussed because advisers and clients. So I would like to reveal some of my thoughts on how to go about managing your cards wisely.
Getting the right credit card for yourself and using them wisely involves some principals that are common to sound investment policies and money management. Here are some of them.
Understanding the purpose of the different types of credit cards
Many folks do not get the proper credit cards for themselves. The reason is that there are just so many credit cards available that researching is just too cumbersome for most people. I like to look at different credit cards just like asset allocation. Credit cards fall broadly into two camps.
A new law that places significant restrictions on credit card companies’ ability to increase interest rates and charge a variety of fees was passed swiftly by Congress earlier this year. Consumers will begin seeing new protections take hold by this fall. Following is a brief rundown of the bill’s key provisions and what they might mean for the millions of Americans who carry balances on their credit cards from month to month.
Highlights of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 include: