Posted on November 6, 2007 at 2:30 pm When you decide to start paying off you debts,: Go through your credit cards and pick out one that you will use for emergencies (new Jimmy Choos are not emergencies, and neither is a new fishing rod) and for things that require a credit card, like car rental. Wrap it up or put it in a tiny plastic bag, along with a warning note to yourself. Put it in a hidden pocket in your wallet, not in one of those slots that displays the card every time you open it. Cut up all the other cards into many pieces and scatter them through a couple of different trash pickups Embark on the same payment plan you had settled on before. Notice how much more quickly the balances go down when you aren't using the cards. You haven't closed the account, the company doesn't know you don't have the physical card anymore. If something catastrophic happens, you can contact the credit card company, tell them you lost or damaged the card, and they will send you a new one. Meanwhile you have removed a lot of temptation from your life.

Posted on November 6, 2007 at 2:30 pm for the emergencies we need a credit card, but we should take responsibility for what we do.

Posted on November 6, 2007 at 2:30 pm Credit cards can be useful if they are properly used. If they are abused that is the start of trouble. For online transactions, the use of credit card is very convenient.

Posted on November 6, 2007 at 2:30 pm One way to avoid falling prey to credit card debts is to get cards which can offer you limited credit limits.

Posted on November 6, 2007 at 2:30 pm I like the idea of cutting up the card. I think it is good to have one in case of an emergency.

Posted on November 6, 2007 at 2:30 pm [QUOTE=squirrel;923]One way to avoid falling prey to credit card debts is to get cards which can offer you limited credit limits.[/QUOTE]But if you do that and then have to charge close to the limit amount your credit score will take a significant hit. It isn't worth damaging your credit to use a low limit card.

Posted on November 6, 2007 at 2:30 pm It seems that the general impression is credit cards are the main reason of incurring debts. I don't want to believe it that way. We incur debts because of circumstances and poor decision making on our part in so far as managing our finances is concerned.

Posted on November 6, 2007 at 2:30 pm Credit cards don't force us to use them. They don't pull a gun and bark, "Buy or else." But they make it easy to buy when we don't have money. The debt grows astronomically because of high interest rates and fees. The worst thing is that it divorces us from the idea that we are actually spending money. I'm a serious worldwide budget traveler who stays in cheap guesthouses that don't take credit cards. I notice a difference of a few dollars when I have to fork over the cash, where in the US a $20 difference in the price of two rooms is hardly noticable because all I have to do is sign.

Posted on November 6, 2007 at 2:30 pm [QUOTE=squirrel;1367]It seems that the general impression is credit cards are the main reason of incurring debts. I don't want to believe it that way. We incur debts because of circumstances and poor decision making on our part in so far as managing our finances is concerned.[/QUOTE] People always want to blame something else for their situation rather than pointing the finger where it belongs, on themselves. Credit cards are a great tool if used responsibly.

Posted on November 6, 2007 at 2:30 pm Credit cards can also be a good tool for wealth accumulation. If you buy something that will produce more goods and services, you earn from using your credit card. But if you use to pay a debt, you are not making full use of your access to credit.