Credit cards can be a gift or a curse. For some they are a status icon, particularly if you’re one who engages in extravagant pursuits like Janet, Jay-Z, Halle, Diddy or Denzel and top the celebrated “I carry an American Express black card” list. For the average consumer satisfied with their low-end-of-the-credit-card-strata silver Visas and MasterCards, they’re convenient and provide a detailed account of your spending habits. Not to mention, they can be a lifesaver during an emergency. The sad reality is that it’s intrinsic to American culture to overspend and use credit cards to maintain an unaffordable lifestyle. When your credit card debt exceeds your savings account balance and there isn’t a plan in place to pay it off, consider yourself cursed thanks to your own irresponsibility. Carrying a balance on your credit card (also known as a high interest loan) is a sure sign that you’re under the credit card spell, which hinders your ability to manage your finances wisely. Here are a few tips to get on the right track and banish the curse of debt one.yvette caslin


1. Develop a plan to pay off your credit cards. As long as you carry a balance, you’re at the mercy of the lender. They’re notorious for imposing interest rates hikes for no valid reason.

2. Only use your credit card to increase your FICO score. The Fair Isaac & Co. (FICO) score is used by lenders to measure how great a risk you are. Focusing on your FICO score has its rewards. The higher your score, the lower your interest rate on loans (mortgage, auto, home equity, etc.). Be sure your balance is less than 50 percent of your limit; this is where points are deducted.

3. Be sure to make your payments on time to avoid late fees, which average $39.00 per billing cycle.

4. Make large purchases with a credit card to protect your investment. The credit card companies protect their consumers when it comes to purchases that turn out to be defective and will quickly reverse charges while they investigate issues that you may have with merchants. Your purchases are protected under the Fair Credit Billing Act.

5. Don’t acquire cards that have an annual fee. You’re already paying finance charges. There’s so much competition among credit card issuers, you won’t have a problem finding a lender willing to waive those fees. In fact, they will offer you rewards like free air miles and gifts for maintaining a good payment record.

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