If you have made any big purchases with your credit card lately, scrutinize them. Figure out if you really need them.

If you realize something you bought is needless, try to return it.

If it is an item like electronics (TVs, Video games, Computer software) the return policy can explain how long you have to return it.

Other purchases like Furniture, DVDs, Clothing (assuming you haven’t worn or washed it should be returnable) fitness equipment, appliances ect ect. Ask yourself if you really need it. If not, attempt to return it. The money you spent should be credited back to your card, and you will be in less debt. If it was a big purchase such as a 2,000 dollar flat screen,  you returned a big chunk of debt, and you just saved yourself a lot of suffering. Wait until you can afford it

Why Late Fees and Finance Charges Suck.

So here is some truth. I was once wreck less. I ignored my debt at times and I paid the price, 137 dollars to be exact. I am talking about a time in my life where over the course of 5 months, I managed to ignore my debt, get hit with 3 late fees, 6 Finance charges, and get my APR raised to 17.9%

I would have been better off strapping a gas mask to the exhaust pipe of my Jeep!

Here is a screen shot, note this took place from 10/8/08 to 3/01/09 (I would never let this happen again.)

Here is the run down. This credit card was based in a different state (where I grew up). Iit was my first one, and I was financially handicapped in the sense that no one taught me any better.  I didn’t take it upon myself to learn the rules of the game.

I scammed myself. The credit card company didn’t do anything wrong. They have a contract, I signed the contract, I broke the contract.

When I moved, I continued to use the credit card, but somehow forgot to make payments. To this day I do not have an explanation of why this happened. I have a few guesses, but there is no blame to be put on anyone but myself.

There are many ways to avoid these dreaded complications! Don’t repeat my mistake. Sign up for automatic reminders, warning you that your bill is due 5 days before it is. Mint.com offers such services, they even offer you text message reminders! I feel so much love when I open a text message and it is from Mint.com.

Sign up for automatic bill pay. This is probably the best option out there. It requires little to no work. Sign into your banking website (if your bank doesn’t have a website tell them to grow up and get with the times.) Click on the bill pay/transfer button. Set up automatic payments for your credit card and any other bill.

Don’t make the same mistake I did. When you get a bill in the mail open it. When you get an email because you signed up for E-Statements (congratulations on help save this planet) open it up, read the email and pay your bills. You should of course be paying the minimum payments on each Credit Card, if not more, depending on what your plan entails. Phone calls should not be the way you find out your bill is 3 months due.

A big reason most of us are in debt is the fact that we carry balances on our credit cards. “In 2007, 50% of credit card holders were not paying their debts off in full each month, and the average debt per American was $9,840.” – article titled, “Don’t Get Clobbered By Credit Cards” by author Gary Weiss.

Are you one of those who carries a balance? Chances are you are, but don’t beat yourself up                                       yet (Do that later if you keep making the same mistake!). I thought it was ok to carry a balance when I got my first card. In fact, I thought that was the point of having a credit card. Charge a bunch of stuff you can’t pay for and pay if off slowly. But that only helps you go into debt faster!

Here is an article I find appalling, http://www.creditcards.com/credit-card-news/7-reasons-carry-credit-card-balance-1267.php 7 Cases when it’s ok to carry a balance. Really? I think all of those cases can be avoided if you just get out of debt and start saving money. Or save while you pay off.

Starting the bad habit of carrying a balance is what got me in debt. Now It’s time to dig our way out.