If you went a little overboard with expenses last month, chances are your credit card bills are just now arriving. But don’t put them aside – you’ll want to address them head on.
Remember, credit card companies make money off of the interest you pay them. The longer it takes you to pay off that bill, the more money you ultimately hand over to them. So be as aggressive as you can with retiring your credit card debt – start by paying down cards with the highest interest rates first, and then work your way down to cards that charge lower interest. While you’re doing this, be sure to keep up with the minimum payments on all your cards, so you don’t fall behind.
Even better, take steps to avoid overspending in the future. Some credit cards will let you set-up text or email alerts that notify you when your spending approaches limits that you can preset. Another idea is to save up in advance for large purchases. This makes you really consider whether or not you want or need that expense, and it gives you time to compare prices from different places. Best of all, it ensures you have the money before you make that purchase — imagine that, making a large purchase without adding to your debt!
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.