5 Bridge

If you have a lot of credit card debt, one of the most disturbing and uncomfortable things to do is examine exactly how it happened. It’s not to punish yourself for making decisions you regret, but to shed some light on how you can choose the
Best Credit Cards for your spending habits and lifestyle in the future.

As an example, you may have accumulated a lot of credit card debt with a card with a low credit limit. If your spending limit was just 1,000 and you purchased on airline ticket, you may have inadvertantly exceeded your limit. Suddenly, a fee was added on to your balance.

Not only was a fee added on, your interest rate jumped. Before you were paying 11 percent interest. Now that rate is 20 percent. Your slightly-over 1,000 dollar balance grows. You make your monthly minimum payment, but you’re still dangerously close to going over the limit again. Just one small emergency purchase, and again you’re socked with another fee.

You could say it was all due to your spending that 1,000. If you had used your choice of Debit VISA Cards to purchase that plane ticket, the problem would have been solved.

Yet, the problem also could have potentially been avoided if you had a credit card with an adequate spending limit. You would have avoided the over the limit fee, and the jump in interest. This is one way examining how you have accumulated credit card debt can help guide your choice of credit cards going forward.

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