** Credit Card Debt Relief Tip of The Day **

CNN Money Says DON’T CANCEL Credit Cards

There has been an ongoing  debate over whether or not to cancel credit card accounts as a way to help with credit card debt relief. The old school of thought was that canceling unused cards would help quell the fears of lenders that you might put yourself more heavily into debt if you have unused credit. Also that canceling the cards would take away your temptations to spend.

But CNNMoney.com put out a report on August 24, 2009 that says your credit ratings will SUFFER if you start canceling credit card accounts, especially if they are older accounts. Why? Because older accounts show more readily that you have a track record with credit (hopefully a decent one). Your credit score will actually go UP if you have old credit card accounts (with a zero balance).

Debt to Credit Ratio Extremely Important

It also has to do with the ratio you owe compared to the amount of credit you have. If you have a lot of credit card debt and decide to start canceling credit cards that are already paid off, then your debt to credit ratio is going to rise. The best ratio is 10% or less in the eyes of your creditors and how your credit score is kept.

For instance, if you have $5000 of credit card debt, but your available credit total of all your cards is $50,000, then you have an acceptable debt to credit ratio of 10%. But if you delete credit card accounts, and your available credit total becomes only $20,000, now you have a debt:credit ratio of 25%. That’s a big red flag these days to both lenders and to your credit score.

Actually Open NEW Credit Card Accounts?

So, what’s the best thing to do to help with your credit card debt relief and credit score, according to CNN Money? Pay off your credit cards, but DON”T delete credit card accounts (especially older ones). They actually say that OPENING NEW accounts, while it will negatively affect your credit score in the short run, is actually advantageous to your credit score in the long run (but this is only a good strategy, they say, as long as you don’t need a loan in the very near future).

To see CNN Money’s post on the cancel credit card issue, click the link.

Disclaimer - Remember that the information on this website/blog is by no means official information. While we attempt to be as accurate as possible, the content is largely opinion and entertainment based and should not be confused with official legal or financial advice. If you need help with credit card debt relief, you should seek the advice of a reputable and professional debt counselor. Further, a commission may be paid to the owner of credit-card-debt-relief.org for clicking into other sites through pay per click ads or by purchasing products or services of affiliated websites. (Please Read our Terms page for further info.)

**Credit Card Relief Tip of The Day **

Tips for Staying Out of Credit Card

Debt

Credit card debt is like a virus affecting nearly everyone’s bank account. But credit card debt relief, unfortunately, usually only comes through some form of tough, time consuming cutbacks in spending and paying down of debt. …So just like with many diseases, prevention is much preferred and much less painful than the treatment after it has infected you.

You (like me) are probably all too familiar with credit cards. And maybe you (like me) could use a decent amount of credit card debt relief? Most people who have a credit card could use some measure of debt relief – some more than others, of course. Just about everyplace you go these days accepts plastic as quickly as money. I even know someone who ran up THOUSANDS of dollars of credit card debt going to strip clubs, of all places! (LOL)

Online shopping has only increased the amount of credit card debt people have accumulated. If you do not payoff your credit cards in full each month, you are going to have to pay a ridiculous amount of interest on your balances and that can ruin your financial health.

Resist The Lure of “Easy Buying”

Another problem to do with credit debt is that we are all getting so many credit card offers in the mail each week. Some people simply cannot resist the lure of “Easy Buying”, and then find out the truth when it’s too late – “Easy” Does Not Equal “FREE”.

Credit cards are a necessary evil in our society today and can be helpful if they are used responsibly. You really do need at least one credit card available to use but you have to be careful not to apply for every credit card offer you receive. You also need to pay your credit card debt off every month. A good idea to help you control your spending may be to get an American Express card that has to be paid in full each month. That way you won’t be tempted to spend more than you can afford. The problem, however, is that American Express is not universally accepted. If you are concerned about accumulating credit card debt (and eventually needing credit card debt relief), the following suggestions will help you avoid problems with your finances.

Here are Four Tips For Staying Out of

Credit Card Debt

1.  Don’t spend money you don’t have just to get credit card rewards. Credit cards that offer things like frequent flier miles are great but only if you can pay off the balance each month. If you carry a balance on a frequent flier reward card, you will have to pay a high interest rate and that means that your so called free airline ticket will actually be costing you more than if you had just bought it yourself!
2. Read all the fine print on any credit card offer you are considering. The teaser low introductory rates they offer you are probably only going to be temporary. That is not the only trick credit card companies use, though. If you are late even by just one day, you will possibly lose your introductory interest rate and end up with a high interest rate. The low introductory rates may also only apply to a balance you transfer from another card, and there are usually balance transfer fees. Also, find out if you have to pay an annual fee and how much other fees, like over the limit fees, are going to cost you (high fees may add to your need for credit card debt relief!).
3. Watch out for the so called grace period offers. Your credit card offer may say that there is no interest if you pay in full before the due date. Some credit cards actually start applying interest as soon as you make a purchase so you really do not have a grace period at all. Others give you a very limited amount of time to pay the balance before interest starts accruing. The grace period may only be a few weeks and may expire prior to the payment due date.
4. To Close or NOT to Close Unused Credit Card Accounts? If you have a credit card you are not using, some experts say you should close the account. Having too much credit available can make it hard to get a home loan or car loan. They say that lenders do not want to risk you using up all your available credit and defaulting on their loan, so you should not keep unused credit cards open (This one is now debated quite a bit. Some other credit experts say that credit cards with a history of non-use shows lenders that you can be responsible with credit, and therefore to keep those accounts open, or at least keep open the oldest account).

Disclaimer - Remember that the information on this website/blog is by no means official information. While we attempt to be as accurate as possible, the content is largely opinion and entertainment based and should not be confused with official legal or financial advice. If you need help with credit card debt relief, you should seek the advice of a reputable and professional debt counselor. Further, a commission may be paid to the owner of credit-card-debt-relief.org for clicking into other sites through pay per click ads or by purchasing products or services of affiliated websites. (Please Read our Terms page for further info.)