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4 important credit card mistakes users should avoid making now
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If you’re like the average American, you have multiple credit cards in your wallet. And, if you use those credit cards properly, they can offer rewards, help with budgeting and more. On the other hand, using credit cards improperly typically leads to mounting debt, significant interest charges and it could even end in financial hardship or bankruptcy.
But, credit card mistakes are relatively easy to make, even though making them can have a detrimental impact on your financial wellbeing. So, what are those mistakes and how can you avoid making them?
Find out how a debt relief company can save you money on your credit card debt now.
4 important credit card mistakes users should avoid making now
Credit card mistakes can put you deeper in debt, keep you in debt longer and costs you more money than you should be spending. Some of the most important credit card mistakes to avoid, then, include:
Staying in high interest debt
Credit cards typically come with high interest rates. In fact, interest rates on these accounts average over 20%. That can get costly if you carry a balance from month to month. And, if you stay in high-interest debt for the long haul, you could spend tens of thousands of dollars in interest over the life of your debt.
So, if you have a significant amount of debt ($7,500 or more), it’s time to take action. The good news is that there are several debt relief programs that may be able to help you pay off your credit card debt relatively quickly while saving a meaningful amount of money – both in the long term and in terms of monthly payments. Consider reaching out to a leading debt relief company for help.
Get out of high interest debt with a debt relief service today.
Not taking advantage of lower interest borrowing options
There may be times in life when borrowing money isn’t just something you want to do, it’s something you need to do. For example, say you need to make repairs to your home, but you don’t have the cash on hand to cover the cost. Borrowing money makes sense in this instance.
But, your first move shouldn’t be to reach for a high interest credit card. There are lower-interest borrowing options to consider. For example, consider taking advantage of a home equity loan or home equity line of credit (HELOC). Both of these options have average interest rates in the single digits – which could offer significant savings when compared to credit cards.
Only making minimum payments
Minimum payments are just that – they are the minimum amount of money that you’re required to pay toward your credit card debt each month. But, only making minimum payments can become costly.
“One mistake credit card users should avoid is only making the minimum payment each month,” explains Dan Casey, investment advisor and founder of the financial planning firm, Bridgeriver Advisors. “Making this mistake can extend the balance for many years.”
Instead, you should get creative with your payments. “If you have multiple cards with lower interest rates, consider making the minimum payment on those so all of your disposable income can be applied to the card with the highest rate,” says Casey. This is known as the debt avalanche and offers meaningful savings by prioritizing the payoff of your highest interest rate debt first.
Overusing your credit cards
“Another mistake is not cutting out all non-essential charges,” says Casey. Ultimately, there may be times when using a credit card for food or gas becomes a necessity. However, before you swipe your card, you should ask yourself, “is this an essential charge?” If you answer, “no,” then you shouldn’t use a credit card to pay for it.
The bottom line
Credit cards can be a smart financial tool when used properly. But, when used improperly, they can also become a financial nightmare. If you already have mounting credit card debt, consider reaching out to a debt relief service for help. If not, avoid high interest debt by taking advantage of other borrowing opportunities when you need access to money. And, when you do use your credit cards, make a point to send more than minimum payments to pay your debts off quickly.
CBS News
Tropical Storm Milton forms in Gulf; forecast to strengthen into hurricane headed toward Florida
Tropical Storm Milton has formed in the Gulf of Mexico and is forecast to strengthen into a hurricane headed toward Florida with possible impacts to its western coast, the National Hurricane Center said on Saturday. Maximum sustained winds are expected to be at 40 mph with higher gusts and Milton is currently moving north-northeast, NHC said in an advisory.
Milton is forecast to undergo a period of rapid intensification before it makes landfall as a Category 2 hurricane across Florida’s west coast, CBS News Miami reported.
The forecast comes a little more than a week after Hurricane Helene made landfall in Florida and across the Southeast, killing more than 200 people and causing immense destruction. President Biden on Thursday took an aerial tour of Florida’s Big Bend where Helene struck as a Category 4 storm. Hundreds of people are still missing and Mr. Biden said the work to rebuild will cost “billions of dollars” as communities suffer still without power, running water and passable roads.
NOAA
Milton is forecast to move across the southwestern Gulf of Mexico through Sunday night then across the south-central Gulf on Monday and Tuesday before reaching Florida’s west coast by the middle of the week, NHC said. Heavy rain is possible in the region starting Sunday into Monday, CBS Miami reported, and more rain and heavy winds will most likely arrive on Wednesday. Hurricane and storm surge watches will most likely be required for portions of Florida starting Sunday, the National Hurricane Center said.
Along with the heavy rainfall, the hurricane center said to expect risks of flooding.
Residents in the area should ensure they have a hurricane plan in place, the National Hurricane Center said, follow the advice of local officials and check back for forecast updates.
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A new Barbie has joined Mattel’s lineup of inclusive dolls. The first “Diwali doll” was announced by the toymaker on Friday, a few weeks shy of the Hindu holiday of Diwali, also known as the festival of lights.
The festival, which lasts for five days, is marked on Western calendars to begin on Nov. 1, but some celebrations start on Oct. 31.
The doll, created in collaboration with fashion designer Anita Dongre, features traditional elements including the lehenga skirt, floral print and golden shoes, according to Mattel’s website. The doll is available at major retailers for $40.
“The look is infused with beauty and symbolism to rejoice in victory of light over darkness with contemporary silhouettes,” the description reads for the Diwali doll.
Lalit Agarwal, country manager for Mattel India, said in a news release that through the Diwali doll, the brand is hoping to showcase “India’s vibrant cultural heritage on a global stage while continuing to celebrate the power and beauty of diversity.”
Earlier this year, Mattel announced the first-ever blind Barbie doll and a Black Barbie with Down syndrome.
In addition, to celebrate International Women’s Day on March 8 and Barbie’s 65th birthday on March 9, the doll brand announced it was adding new dolls to its Role Models collection, based on real-life singers and actresses from around the world. They’re not for sale – a one-of-a-kind doll was made for each of the honored women.
The dolls are meant to introduce “girls to remarkable women’s stories to show them you can be anything,” according to Mattel.
