It’s never too soon to talk to kids about money, and as for a card, it’s best to start them on one before they leave home, say perhaps when they are a junior or senior in high school. Let me give an example.

Before my daughter left for college, she got a checking account, linked to her parents (of course), and then later a credit card with a very low limit. The idea here was for her to learn to pay for things herself before she got out into the big bad world on her own. I like starting them on these things while they’re still under their parents’ roof, so they get practice, and when they decide on the 5 jeans, and then realize there isn’t enough dough left for lunch and gas money, guess what? They brown bag it to school and take the bus! Or they ride with friends, etc. There’s no harm in their experiencing the consequences of overspending while they are with you, and their limit is low.

You can get a card with just a few hundred dollars limit, and then help them pay it off in full and on time every month. This is actually very good because it builds good credit, it gives them practice, and they feel like a big shot! Not only that, they aren’t constantly asking you for to cover the pizza fund. Well, probably they are still asking, but at least your child can see how far a finite amount of money goes, and learn to adjust, or not!
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Learn How to Get Rid of Debt the Easy Way

Have you fallen into this trap? Repeatedly, reliable survey sources tell us that most of us do not realize how much we spend every month using our credit cards. Investigations reveal that when consumers thought their total credit card debt was about $20,000, in fact it was closer to $40,000. Scary difference – consumers are spending a lot more than they think! When we routinely pay for everything with the plastic card and don’t keep track of what we spend, these careless spending habits all too often lead to debt problems – problems which can easily be avoided.

To add to the problem, most of us have several credit cards, so if you use them to pay for everything, then you also transfer the balances from time to time to get a better interest rate, it’s easy to miscalculate how much you’re spending. With so many credit cards and with so many different payment options, it is easy to see how overspending can occur.

Six out of ten consumers don’t even know their account balances, so funds could be withdrawn in fraudulent transactions without them even realizing it! Now if you don’t keep track of your money, who else is going to? So what you need to do, if you haven’t done so already, is sit down and get an understanding of where you stand with your credit card debt. Double check what’s coming in and what’s going out, make sure everything balances at the end of the month, then continue to keep a tighter grip on your accounts.
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 To save money, there a few things you should know about your credit card bills:

 1.  If you have credit card debt, pay your credit card bill more than once a month.  If you get paid weekly, then pay part of your payment every week, and if you get paid biweekly, pay it down every 2 weeks.  By doing this, you will significantly reduce the amount of interest you pay.

 2.  Another thing you can do to save money when carrying credit card debt is to pay your bill as soon as you receive it because although you won’t be charged interest on your most recent purchases, you are still being charged interest on your previous debt.  The sooner you make your payment, the more money you save on interest.

 3.  Pay your credit card bills online as it ensures your payments will be made on time.  If you can’t pay them online, make sure that you do not write any notes on your bill or it will more than likely be passed on to another department.  This paper shuffle could result in a late payment and you don’t want that!  Also, be sure to write legibly because if the company can’t read your writing they have an excuse to delay the processing of your payment, which may result in late fees and interest charges.

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Credit Card Tips

by Pam on March 31, 2009

Choosing the Best Credit Card for You

Choose a card that gives you rewards every time you use it. Depending on your interests and goals there are a wide variety of rewards cards to choose from. Some financial institutions offer credit cards that pay out dividends based on the amount of money you spend. Don’t be afraid to shop around until you find the credit card that best suits your needs. Usually credit card companies offer bonus rewards for signing up. Note that you can usually get a rewards card without an annual fee so there is no need to pay to use your credit card. Also, be sure to take advantage of the in-store credit card offers that give you immediate discounts on your purchases. Make sure to pay off the balances before you owe any interest. Even if you never use the card again, it has saved you some money.

Once you have found the credit card that works for you, you need to know how to use it wisely and how to protect yourself from fraud. I have provided you with some tips below.

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