Simple Rules Can Help Prevent Credit Card Debt

Credit Counseling Service has one simple consideration: whether you can manage your credit card properly.

As the CEO of the nonprofit group that helps consumers break free from debt, Richard Skaggs has seen a lot -- including individuals carrying as much as $200,000 in credit card debt.

However, the Consumer Credit Counseling Service's chief executive said following some easy steps can keep consumers from falling into the pit that is credit card debt.

Skaggs urges credit card users to establish a budget and then to follow that budget exactly. In other words, don't be tempted to charge that plasma TV to your credit card on a whim when you haven't budgeted for it this month.

Also, he tells consumers not to carry a balance on their credit cards for longer than six months. Skaggs explains that beyond that point, the compounding of simple interest can produce a very expensive balance to pay off. If it helps, think of your credit card balance as a snowball that grows larger as it rolls downhill.

Furthermore, reward credit card holders might end up spending more than the reward itself is worth if they don't pay attention to the fees and interest associated with their credit card. Visitors to CreditCardXPO.com can view such information for a specific credit card by clicking on the "apply here" button, then selecting an underlined link for "pricing and terms" or "terms and conditions."

The CEO also recommends looking for a low interest credit card if your credit card's interest rate is excessive. Still, he tells consumers to be aware of the normal interest rates on any balance transfer credit cards once the low introductory rates expire.

Overall, Skaggs stresses the importance of consumers taking responsibility and managing their finances.

And, should credit card holders get in over their heads, many card issuers will work with customers who take the initiative to call with the goal of working out a payment plan.

Credit Card Users Can Take Steps to Protect Themselves From Identity Theft

Credit card users, and consumers in general, are right to be concerned about identity theft. This growing problem threatens their bank accounts and credit scores, and can result in the loss of time for victims working to recover from having their information stolen.

But there are ways to protect yourself. While one of the most well-known steps involves always shredding credit card offers and any documents containing personal information before throwing them in the trash, there are a number of other ways to avoid becoming a victim of identity theft.

• Know where your important documents are kept, including your passport, driver's license, and social security card, and make sure they stay safe -- possibly in a locked drawer or cabinet.
• Immediately report the disappearance of any mail you should have received from a credit card issuer or your bank.
• When credit card bills or banking statements arrive, look them over ASAP. Contact your credit card company or bank directly if you spot any unusual or unauthorized charges.
• Investigate any credit card or other bills, invoices, or receipts for good or services you have not ordered.
• Get a copy of your credit report from all three major issuers and look for any items that are unfamiliar.
• When moving, be sure to get your mail forwarded to your new address. Then, follow up by ordering a copy of your credit report two to three months after the move.
• Keep a list of the phone numbers you need to call if credit cards or debit cards are stolen.
• If you have a safe deposit box at the bank, consider storing valuable financial information (like stock certificates) there.

There are also companies out there that can help you to prevent identity theft or help you fight identity theft problems. Protect yourself from Identity Theft today.