Stop Wasting Money With Credit Cards

IRVINE, Calif., Jan. 23 /PRNewswire/ -- The convenience of credit cards makes them a very attractive and sometimes necessary choice for most consumers -- but they can also be dangerous. With a few savvy strategies, even debt-riddled consumers can minimize many of the extra costs associated with credit card debt.

"If consumers must be in credit card debt, they should at least be smart about it," said Jason R. Rich, author of Smart Debt (http://www.entrepreneurpress.com/). He offers strategies to avoid wasting money on fees and interest.

  * Apply for credit cards that have the lowest interest rates and fees.
    Read the fine print of the cardholder's agreement carefully to
    understand all associated fees: annual fees, account maintenance
    charges, over-the-limit charges, late fees, cash advance fees, ATM fees,

    etc.

  * To avoid interest charges, don't use credit cards for everyday purchases

    without a plan and the funds to pay off the balance at the end of each
    month.

  * Always pay at least the minimum monthly payment on time for each credit
    card.

  * Try to pay more than the minimum monthly payments.

  * Don't use credit cards for cash advances, especially if the interest
    rates and fees for this convenience are high.

  * Instead of maintaining high balances on several high-interest credit
    cards, apply for lower-interest credit cards with attractive balance
    transfer offers and take advantage of no-interest or low-interest offers
    to save money.

  * As a general rule, store-issued credit cards typically have higher fees
    and interest rates than traditional credit cards.  Even if the initial
    offer for a house card seems attractive, read the fine print carefully.
    In most cases, it's more cost-effective to use a regular, low-interest
    credit card for those big-ticket items.  Don't apply for an additional
    credit card to make a purchase if it's not absolutely necessary, no
    matter how much money the salespeople claim it will save.

By following the principles espoused in Smart Debt, rather than avoiding debt altogether, consumers can minimize unnecessary payments and fees, saving them countless dollars.

Smart Debt, Entrepreneur Press, November 2006, $19.95, ISBN: 1-932531-742, Paperback, http://www.entrepreneurpress.com/