• "The surest way to establish your credit is to work yourself into the position of not needing any."
  - Maurice Switzer
  
  "Credit is like a looking-glass, which when once sullied by a breath, may be wiped clear again; but if once cracked can never be repaired."
  - Walter Scott
  
  "No man's credit is as good as his money."
  - Ed Howe
  
  "Friendship, like credit, is highest when it is not used."
  - Elbert Hubbard
  
  

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  • November 2008

SmartMoney.com recently conducted a poll, which showed that more than 50% of credit card users have to pay more then 12% rate of interest towards their outstanding balance while more then 20% are paying upto18% rate of interest on their dues which is as good as paying a full balance each month. Mounting credit card debt are the concern of each American and here are some of the tips that can help you in avoiding being pulled in this abyss called credit card debt :

• Check credit card rates
You may be receiving dozens of tempting credit card offers every week in your mail box. The key is to be conscious of the hidden fees and interest rates, before you select on a credit card. Generally credit card companies follow two interest rate policies one while transferring balances and second when you make a purchase so be sure of the interest rate policy which will help you in credit card settlement. Also, credit rates may increase sharply even if there is a delay of a day to make payment. Keep all these factors in mind which will help you in avoiding credit card debts.

• Check for the Grace Period
If you have been regular in paying your credit card balance select a credit card that offers grace period, amounting to more then 25 days. Some credit card companies start charging interest from the time of actual purchase which ends you with a credit card debt if you are paying the balance amount. Check all these technicalities and don’t get fooled by the grace period.

• Check for Credit Card fees
To enjoy credit card debt relief, be sure of the credit card company’s fee policy. Some company’s charge you annual fees; avoid getting hold of such a credit card. Credit companies also make money by charging the users a closure fee as high as 50 dollars. So be doubly cautious while settling on a card. Late payment fees are charged even if there is a delay of a day in making payment and company also hike your interest rates. Late payments are the major cause of mounting credit card debts and should be best avoided.

• Choose between Fixed and the Variable Rate
At the time of credit card purchase you have to make a choice between fixed rate and variable rate of interest. Fixed rate of interest are slightly higher and the only benefit it offers is a 15 day advance notification of the hike in interest rate, while variable rate is dependent on national rates. Keep a close eye on credit card bills to see how the rates are being calculated
By making a conscious decision while selecting a credit card will go a long way in saving you from credit card debt!

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