Aldy Say

First of all, let me say a few basic facts about credit cards:

1) credit card industry is huge. Do you know why? Because ... Please read below
2) Americans' credit card debt has reached 972 billion U.S. dollars in 2009
3) The average amount of credit card debt for households that have a balance of approximately $ 11,000
4) The average American household has more than ten (!) credit cards

Wow .... Pretty fascinating facts, is not it?

I'm pretty frugal by nature, and I try to use common sense and get a good knowledge of the subject in everything I do. When it comes to credit cards, no black and white approach. You definitely need to do some thinking and research about how you want to be with them, and if you want to use them or not.

This is my personal approach to handling credit cards and getting out of debt. You can hate it or love it.

1 Remember that credit cards are actually debit your card because you put in your debt if you do not know how to use them (read the fine print!) and / or use them irresponsibly. Please take the time to carefully read all the announcements, and remember. card companies can change them at any time

The good news is that under the new credit card of any changes in credit card terms and conditions, most importantly, the interest rate increases, they must advance notice of 45 days before any changes can be made​​. And also the monthly reports are now required to list the relevant information in plain sight. There will also be a section that shows how long it will take to pay off the current situation only if they are making the minimum payment.

2 Do not rush to shred your credit card to avoid debt, just get a card that will actually work for you, not against you. I would recommend that people have two and not more than three credit cards to earn frequent flyer miles, 1% cash back and / or a variety of prizes, and have none or a low annual fee.

By myself I get the following goodies at a certain time period:

1) free ticket to Europe to visit my family every 3-5 years to save me about $ 2,000 just by using my Flex Perks Visa credit card, or 2 free tickets to anywhere in the country every few years.
2) I also get various free gift cards and discounts by using my American Express card.
3) I get the convenience of checking with a 0.99% interest rate for 6 months of using my Chase card. This is very handy when you have a project, such as a kitchen remodel, and need a certain amount of money that can pay off in a few months.
4) If you want to be free of debt, try to pay off all your card balances each month. This is the golden rule. In this way it is you who benefits from all the awards from your credit card, but not credit card companies (!).

Remember though that the new law puts a limit on how high your credit card interest rates can go. You'll notice several changes in its terms, but they are not protected against the skyrocketing prices.

3 Be aware that sometimes when I charge the (substantial!) the amount of money from your credit card, credit card companies tend to raise your interest rate by as much as 5-6%, even if they have never defaulted on payment. It can be very difficult, especially in these difficult economic times. If this happens, you have the following options:

1 - to pay off (best if you have the cash to do),

2 - If you have good credit, I'm sure you've got a lot of convenience checks in the mail with a very low promotional rates such as 0.99% for 6 months or 4.99% for the year. Using these checks can pay off your high interest credit card balance. This will be the best bet. Just remember to typically charge at least 3% transaction fee for such transactions, as well as for cash advances. If you have a great balance to give you a year or longer to pay it, then it would be worth transfer balances from one card to another. But you really need to do your math before you do.

3 - If you have bad credit, low wages, no money to pay for it. This is what you should do:

1) Call the credit card company and try to negotiate a heartbeat. Tell them that you could afford to pay, while the interest rate was low, but now you'll probably have to default on your payments. Probably a regular Customer Service Representative will be able to help, so ask to speak to the Supervisor. Miracles do happen, and they could lower interest rates for some time. If they are not transferable, and options are as follows:

2) Stop using your credit card. If you do not have money to pay for it, you should not buy it (whatever that is). Put your card in the freezer. If you're tempted to something, you have to thaw them. This trick gives you some time to change your thinking about buying.

3) Get another job! Yes, you put yourself in this situation, so you need to do something about it! Take a second job to pay off all your cards, but also to build an emergency fund. You will then be much smarter about spending money, because it was so hard to get out of debt. I knew a guy who has traveled to Japan and Europe for several months, and I got into a huge debt of over $ 15,000. It was difficult for him to pay it, because it is making only $ 10 per hour. The only way for him to pay off his debt was to the night. So, he worked as a counter during the day and he was stocking the shelves of Wal-Mart at night. He did not have time to spend their money, he barely slept, but he was very proud of himself when he paid off his debt after more than a year and a half days of hard work.

4) If you have more debt than you can actually wear and even has 2 jobs, I would recommend that you hire a professional to negotiate your debt and get your credit score set up 50-100 points in just a few months. I know some companies that will charge you only $ 49/per month until you come to a better place financially. I would say that it is dirt cheap considering they were getting back your financial freedom and control over their finances and credit.

5) This one is very important! Learn from your mistakes. I can not stress enough! Do not step into the same mud hole twice as they say in Russia. Remember: They want something and have something completely different things

can be very trivial to say, but I think for a moment about people in other countries: India, Africa, Latin America .... They will be happy just to a plate of food on a regular and decent place to sleep. Do you think you will need a designer handbag or a Hermes scarf to be happy? Buildings do not make us happy, if they do, can only be an hour or a day ... Great people, wonderful relationships, terrible life's work, close friends and family to make a difference in our lives and make us feel happy and achieve more.

Have you ever heard someone say: I love giving more than receiving them? Well, sharing is caring, and makes us happy to think about someone who will receive your gift. That's the way I feel when I send a bunch of gifts for my family in Belarus, knowing that they can barely afford to buy something for Christmas. I love the feeling that I will make a difference in their lives. May be this is just one of a million families out there who can help, but it makes me extremely happy by imagining how they opened my package with gifts that have come from 10,000 miles away, smiling and sharing news with each other and everyone they know. These are the moments worth living ...

So shred your credit cards or put them away for emergencies, and learn how to live your life in its entirety: watching the sunset from your patio at the end of their working day or sharing a nice homemade meal with close family and friends, exploring their neighbors, helping some elderly, or who are in need or as donation to Goodwill Store. Consumption goods will make you happy for just a moment, but those things will make you feel not only happy but also make a better person for a long time.

This is how we can make the world a better place to live. One person at a time. No matter where you live, who you are and what you are from the ...

you fully deserve to be happy!