Minimize Credit Card Debt

Did you know that there are twice as many credit cards in circulation in the United States as there are residents? That means that on average, every American citizen owns two credit cards. Over the last decade, credit card use has more than doubled -- a figure that is not surprising considering the amount of card offers everyone receives on a daily basis.

How do you protect yourself, and your financial future? Before you sign up for a card, analyze the facts and know what you're getting yourself into:

Know the interest rate: Most often, credit card companies will advertise a certain interest rate, known as a promotion interest rate, and after a certain period switch to a higher rate. In order to get the lowest possible interest rate, you must have good credit; otherwise, you'll pay between 15-25% APR. A fixed APR is your best bet as it cannot change without prior notice. Conversely, a variable APR can change on the fly, making it more difficult for you to know exactly how much you're being charged.

Be timely with your payments: If you're late on your credit card payments, you not only risk blemishing your credit history, but you can also expect higher interest rates from the card issuer. In addition, a lot of card companies will immediately discontinue your promotional APR if you're late on a payment, so make sure you're prompt and you'll save yourself money in the long run.

Get online shopping protection: A large number of credit cards will give you a 100% money-back guarantee on all online purchases in case of a fraudulent transaction. If you are an avid online consumer, don't take any chances and get a credit card that will protect you.

How to stop receiving pre-approved card offers: If you are like most Americans, your mailbox is consistently filled with pre-approved credit card offers from companies trying to get your business. Often times, you'll even receive an actual credit card in the mail, without even requesting it. Not only is this bad for your financial future, but it can be downright dangerous with the large number of thieves just waiting for an opportunity to steal. We recommend that you call 1-888-5OPT-OUT and remove your name from the database these card companies use to send out their offers. By opting out, you'll dramatically reduce the amount of junk mail you receive, and you can breathe a little easier.

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