Why I made this website
It has become pretty clear to me that I need to make a website to help people to deal with their credit card issues. I work as an accountant and that means that I have to help people to sort out their finances. It always amazed me how many people had no idea how badly they were hurting themselves with their credit cards.
The primary reason that I made this website was to help people to make better decisions about credit cards. As an accountant I have seen so many people whose finances where a mess because they didn't understand how credit cards work. The absolute most important thing that you have to keep in mind when you are using your credit card is that you are borrowing money, and at a very high interest rate. This is the biggest single mistake that most people make. They fail to understand that when they use a credit card they are taking a loan. If you keep this in mind you would probably change the way you used your card. It does not make sense to borrow money to make day to day purchases like food.
The other big mistake people make with their credit cards is that they do not understand how the interest rate affects their finances. It is one thing to know that credit cards have a high interest rate it is another thing entirely to understand how much this actually costs you. If you routinely carry a balance on your credit card you will end up paying several times more in interest than in principal. Basically you should triple the price of everything that you buy with your credit card because that is what it costs you if you carry a balance on a regular basis. You should be trying to pay off your card in full every month, failing that you should try to pay as much as you can. The last thing that you want is to be paying the minimum; this is set to get you to pay as much in interest as possible.
If you are already heavily in debt to the credit card companies there are things that you can do to get out of it. The big thing is to make sure that you come up with a strategy that will allow you to pay off your debt. Obviously you will need to stop using your card since adding more debt won't help you to get it paid off. You are also going to have to find the money to make sure that you can pay more than the minimum each month. There is also a strategy in the way that you pay off your cards. Basically you will take the card with the highest interest rate and focus on that first. Pay the minimum on all the other cards and put everything else towards this one card. When it is paid off move on to the next one.