The Bill Is HOW Much?

Nobody likes surprises like getting a bill that runs higher than expected. When I worked customer service for a major telephone company, we would be deluged with calls from customers whose first bill was much higher than normal. They probably failed to register in their minds that the first bill includes the installation charge, plus prorated fees (that company charged a month in advance for your service and then, when you left, refunded any extra that they had collected). Credit card debt can be much the same way.

You have to read the fine print. When applying for a credit card, though, how many people actually do that? Usually there is a clause concerning universal default rate stating that the credit card company has the right, at their discretion, to increase you rate if you are late on a payment. That payment doesn't necessarily have to be with that particular company, it can be any payment. It isn't fair, but because you signed the agreement, they can stick it to you.

The best way to avoid this and stay out of further credit card debt?: Pay your bills on time. In this economy, money can be tight, but it is important to take care of things before they get worse. One of the reasons I took a second (or third) job was to ensure that I could eliminate my credit card debt once and for all. It doesn't have to be a glamorous job either. Even though I now have an MBA, it isn't below me to be a cashier or to clean buildings...whatever it takes.

Just keep at it, keep track of your progress and stick to a plan. You can succeed!