Credit Card Debt Essentials

Understanding Your Credit Card Statement

The Back of Your Statement

The fine print on the back of your credit card statement is also packed with very important information. Remember, proper credit card management will benefit you. Here are some points you should look for:

Cash Advance Fee

This fee is charged if you use your credit card for a cash advance. This may be a flat fee or a percentage of the cash advance.

The interest that is associated with cash advances is usually higher than the rate you pay on purchases you ordinarily make with your credit card. And you will probably be paying off that higher interest rate until you pay your credit card bill in full. To ensure good credit card management, try to avoid taking cash advances from your credit card.

Lost or Stolen Cards

As soon as you realize your credit card has been lost or stolen report it immediately. A number to call is on the back of your credit card statement. If you contact the credit card company before the thief uses it, you will not be responsible for these charges. If you do not, you will be responsible for the first $50 of charges.

As part of proper credit card management, be certain to read the cardholder agreement or yearly disclosure statement that comes with your credit card to learn more about lost or stolen cards. If you phone your creditors about a lost or stolen card, document the important information regarding the card and save it so you will have it for future reference.

The situation changes dramatically if a family member or someone you know uses your card without your permission. You will then have to take legal action against them to have the unauthorized charges eliminated from your account.

Other Fees

Some credit card companies charge a fee if you pay by telephone. They may also charge a fee to cover the costs of reporting to credit bureaus, reviewing your account, or providing other customer services. Read the information in your credit card agreement to see if there are other fees and charges.

Credit Card Ownership

When you take ownership of a credit card you are taking on a financial risk. Educate yourself so you minimize the risk – learn about the credit card by reading your monthly statements. Be diligent. If you start to lose interest in your credit card statement and do not practice proper credit card management, it could be very damaging to your personal financial situation.

Consolidated Credit Counseling Services Can Help

If you are struggling to keep up with your minimum payments on your credit cards and your financial problems are affecting other areas of your life, debt consolidation may be the solution for you.

You can get a Free Budget & Debt Analysis here, and you can speak with one of Consolidated Credit Counseling Services certified credit counselors. They will help you determine if credit counseling is the right option for you.