NewParentsClick

Step 1

Keep on one credit card in your purse - the one with the lowest interest. Cut up the rest. This will help you to manage, track, and control your spending with just one card available. Even if you like to max out your credit limit, at least you contain the damage to just one card.

Step 2

If you tend to use your credit card when you run out of cash, train yourself to use debit card instead. This way you avoid running up balances and there’s no bill to pay at the end of the month. In addition, it makes you think twice taking money out from the bank directly.

Step 3

Don’t miss those payment deadlines. Late charges are in the range of USD20. If you have three cards and miss deadlines twice a year, you will chalk up USD120 of late charges a year!

Step 4

Lower the interest rate of your card. Call up your credit card company and tell them you want to cancel your card because a competitor has offered you a lower interest rate and you want to transfer your balance to the new card. Usually they will offer you a lower rate to keep you as a customer.

Step 5

Watch those annual fees. I will call to cancel my credit card once the promotion of waiver of annual fees is over. Often the credit card company will waive the annual fee to keep you as customer. If not, you can always apply another that gives waiver of annual fees.