Change Your Way of
Thinking About Credit

Credit cards have a psychological effect on most people. We have all charged something and not felt we paid for it. Even when we get the bill we look at the minimum payment and think " that's not so bad". Many people take this so far that it puts them in serious debt. To really get a handle on your credit spending you must take a different mind set. Thinking of your credit cards as cold hard cash is not an easy thing to do. Your fighting against Madison avenues biggest pitch and it takes some serious awareness. Here are a few things to keep in mind about your credit spending.

Take the amount of the purchase you intend to make and add about 20 percent to it. That's about the average percentage most people pay after you consider monthly interest rate and pay off time. Keeping this in mind makes those hard to resist bargains a little less attractive. You are not really getting 20 bucks off on that golf club if you put it on your credit card.

Before you make that purchase, think, "Can I pay this off in 25 days?"

If the answer is no then you should reconsider the purchase. It only takes a few months of not completely paying off your balances to shoot your monthly payment up.

Read the terms very well. Pay close attention to the interest rates and annual fees. Some annual fees are very high. Don't be tempted by a special introductory rate. They are usually for a very short time and your balance is set to the new interest rate as soon as the introduction is over.

Steve Gibson