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When the economy gets as tight as it is today, so do banks. We hear news reports that the credit crunch has now hit the banks. Banks are no longer willing to extend the generous credit limits of the past. Your APR may rise overnight due a late or skipped payment, no matter how long you've maintained a pristine payment record. Plenty of people find themselves taking a cash advance on one credit card, to make the minimum payment on another. Cash advances mean a transaction fee, while making the minimum payment on the other barely keeps you afloat until the next payments are due. This type of activity can put you in a downward spiral which ends unhappily. Your credit rating goes down, your rates go up and you've got a mess on your hands. While this is not a pretty picture, your need for credit advice is becoming apparent. You know you can't continue this way, but what can you do? If you were to give your children credit advice - what would you say? You are the voice of experience talking. After all, you have been there and done that, so you should listen to and learn from your own credit advice. Listed below are some principal credit rules. 1.If you can't afford to pay cash for an item, don't buy it. If you reserve the use of credit cards to purchases such as gasoline, clothing and regular expenditures for which you already have cash in hand, you can maintain a credit history and good credit rating by setting that cash aside and paying off those credit cards each month. 2. From time to time you will have to pay out for emergencies. For example, you may need some urgent dental treatment where your insurance does not cover the full cost. This is the sort of thing you can use your credit card for as long as you do so responsibly. Make adjustments to your monthly budget and get this expense paid off as soon as you can. Although it is tempting to simply pay the minimum amount, this means you will take much longer to pay off this unexpected debt and with the interest incurred, the dentistry ends up costing you a small fortune. 3. Nearly everyone takes little if any notice of this next bit of credit advice. When you go on holiday, don't pay for all your holiday souvenirs with your credit card. The lovely gifts you have bought for your family and friends will not be appreciated when six months on you cannot afford to pay for your household bills and other essentials. 4. Try to put away at least $10 dollars every week into a savings account. You should be able to manage this, however tight your budget is. It may not seem worthwhile at the time but after twelve months you will find you have the cash to pay for your next dental appointment or whatever unexpected expenses you find you have on your hands. The top and bottom of the best credit advice is to live within your means and remember to set up a savings plan, however small so you can face whatever financial strains life throws your way without getting into debt.
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Andrey Breit is a credit consultant and very famous for his expertise on credit and financial products . If you want to get more credit advice, click here.
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