As people struggle with their credit card debts it looks like the environment is only going to get more difficult, especially for those with low credit scores. As creditors are facing increased losses, they are decreasing the chance of offering fixed rates, raising minimum payment requirements and raising fees. All of this leads to a thin budget for many individuals. If you are in a similar situation then you need to consider free debt settlement advice.
First, you need to follow the thirty percent rule. You ideally want to stay below thirty percent of the available credit on any credit card. After you go above this level, you end up on the radar of a credit card company. Once you go over this percentage, you will also have lower credit limits and an increase in interest rates.
Next, make sure you keep your credit cards active. If your cards are inactive, the issuer may close the account or charge fees. However, closing an account can also reduce the available credit you have and result in higher fees for the accounts that you keep open. It is a good idea to use credit cards once or twice a quarter in order to avoid any problems associated with inactivity.
It is understood, that you should always make your payments on time. When you are late with a payment there will be immediate and severe cost increases. Creditors are becoming increasingly diligent about their holders that break the rules. Costs are constantly going up as these people are considered risky borrowers.
Lastly, if you experience a rate or fee increase then you should call your creditor. If you are in good standing with them then you can challenge the fee and interest increase. Some credit card companies will respond to your requests so it is always worth it to ask. Do not simply stop by talking with the customer service representative; rather ask managers to get the best results.