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3 Questions to Ask Before Taking on Credit Card Debt

Created: On June 17, 2010 @ 1:15 pm In

Despite troubles with the economy, many consumers still find if relatively easy to sign up for credit cards. In many cases, people are carrying balances on more than one credit card. Over 575 million cards were in circulation at the end of 2009, and the average cardholder has 3.5 cards, according to an article on Mint.com.

Do You Need More Credit Card Debt?

Take a deep breath before taking on new [1] credit card debt and ask yourself these three important questions.

  1. Are you already finding it tough to pay off balances on existing credit cards? Unless you are using a low-interest balance transfer offer as part of a debt reduction plan, it’s probably best to avoid signing up for a new card.
  2. Do you need [2] debt counseling because you spend impulsively? Frequent trips to the store, dining out on plastic, and getting credit card cash advances to pay monthly bills could signal a real problem.
  3. Will applying for a new card hurt your credit? Check your credit report to review your financial history. If you already have a history of defaulting on loans, went into foreclosure, or have too many open credit lines, you may not even qualify for a new card. If you do get approved for a credit line, don’t expect to receive the lowest interest rate available.

Applying for Cards

Just because you can get approved for a credit card doesn’t mean you should apply for one. If you already feel like you need [3] help with debt, opening new credit lines won’t help your financial situation.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2010/06/17/3-questions-to-ask-before-taking-on-credit-card-debt/

URLs in this post:
[1] credit card debt: http://www.debthelp.com/blog/2010/06/07/reports-of-reduced-credit-card-debt-not-all-good-news/
[2] debt counseling: http://www.debthelp.com/debt-consolidation/credit-counseling.html
[3] help with debt: http://www.debthelp.com/blog/2010/05/26/credit-counseling-and-debt-consolidation-finding-help-on-you
r-credit-card-bills/