Credit Card Rules Still Confuse Consumers

The most effective way to avoid having credit card problems and falling for those confusing interest rates is not to use a credit card. But if you insist on using it, don't carry a balance.

So what's the point? CONVENIENCE AND SAFETY. I don't use a debit card to buy things. It's too risky. Money gets taken out of your checking out immediately. Or, if you buy gas, money gets blocked that you can't use. And don't get me started on overdraft fees. Sure, you don't have to allow overdrafts, but that means you can't buy anything if you run out of money because that last deposit didn't go through in time. Been there, done that.

Instead, use the credit card and pay it off every month. If you can't afford to pay it off, don't buy what you can't afford. Save for it. That's what savings accounts are for. Most of you don't remember Christmas Clubs. Those are accounts banks set up for you to save money for your Christmas gifts. These days, you can do the same thing on your own using Internet banks. There's a website called SmartyPig that lets create these kind of savings accounts online and pays an above average interest rate.

Jimmy of MD 3:53PM July 22, 2010