Credit Card Problems

With credit card rate delinquencies rising there is a good chance that you may come under financial stress over the next few months if you are carrying a lot of consumer debt. With the national joblessness rate continuing to rise (it just hit a 14 month high) there is always a chance you may find yourself out of work. To prepare for that now, make sure you start living beneath your means. Cut back on unnecessary spending so you can pay down any outstanding credit card debt that you have accumulated.

High interest rate cards can be also be very damaging to your credit rating. If you can't make the minimum payment, you run the risk of defaulting on your credit card which could put in you a bad situation. If you can't make credit card payments and your debt is mounting, you may want to consider filing for bankruptcy. Before you make that decision you should seek professional advice.

If you really get in a pinch you should consider finding a credit card with an introductory offer of zero percent interest for 6 months or 1 year so you can transfer high interest rate debt to a card with a better offer. This will buy you time to rein in your spending and possibly find a higher paying job so you start to make progress on your financial situation.

Don't be afraid to use your credit card. It's necessary to use one to establish a solid credit score, you just need to take extra precaution to only buy what you can afford so you don't take on too much debt.