Less Convenience Stops

Bob and I used to pay cash when we put gas in the cars. Of course, that was much easier when $15 would be sufficient for the week. Now we use our credit card and no longer take time to deal with the cashier.

A dear friend of ours works for a manufacturer of specialty items that are always positioned near check out counters and especially within sight in convenient stores and gas stations. Her business has been cut in half. So few people go inside to pick up a Coke and chips or something.

It got me to thinking about habits and I thought of a few things regarding credit cards and credit card balances.

Have a Payment Plan - Making only the minimum required payment is not a realistic strategy for resolving credit card debt. Set a goal date for when you want your card paid off and budget payments accordingly. If you have multiple cards, pay off the credit card with the highest interest rate first. Once the first card is paid off, roll the amount you were paying on that card into the payment plan for the next card with a balance, and so on.

Pay Attention to Changes in Interest Rates - Do you know the rate you are paying on your cards? Credit card companies are required to provide you notice of any changes in the terms of your contracts. So often we toss these notices tossed aside as "just more junk mail". Changes in the interest rate or minimum monthly payment can significantly affect both your payment plan and the urgency for paying off the balance.

Avoid Using Credit - Ideally, your credit card should only be used in the event of an emergency such as an expensive repair or unexpected medical expense. But the truth is we use our card at the gas station, at the dentist's office, at Target/other discount stores, for internet purchases, and for some donations. But we do not use the card unless we know we can cover the charges. Rarely do we leave a credit card balance stand from month to month. We never pay utility bills or large purchases on our card. We have never taken a cash advance. Some of those rates should be unlawful.

'til later