Women and Debt: The Price of Playing Now and Paying Later

Women and shopping go together like, well, credit cards and debt. If you're a recreational shopper who funds your "playtime" with plastic, you may be asking for trouble. Recent figures suggest that about one in ten Americans owes more than $10,000 in credit card debt. Considering interest rates and additional finance charges, digging out of debt can seem impossible, but it isn't. Here are some tips for managing debt:

Managing Debt: Forget About "Convenience"

We use credit cards because they're convenient. Wrong! That excuse went away when debit cards became available. Sure, you have to use debit cards wisely and track your spending, but you're paying with cash instead of credit. This will likely cause you to consider purchases more carefully, and can help you avoid purchases you can't afford.

• Use cash or a debit card for purchases: When you have to think about your bank balance, that high-end leather jacket may not be quite so appealing. If you don't want to carry large amounts of cash, your debit card can help you limit spending
• Don't pay for food or other necessities with credit cards: If you're charging your groceries and household supplies and carrying balances on your credit cards, it's time for managing debt! Running out of cash between paydays and using cash advances are signs of trouble.
• Don't sabotage relationships: If you have a spouse or partner, it's not fair to run up your credit cards. Handling finances within a relationship becomes an issue of trust. If you lie about your debt, what else might you lie about? Couples can agree to keep separate "fun money" accounts, but it's unfair to risk bad credit on jointly held accounts, or to risk compromising credit for joint purchases such as a home. .
• If you carry credit card balances, put your cards away: Credit card companies use methods of calculating finance charges not only on what you buy each month, but also on your ongoing balance! You keep paying finance charges as long as you carry balances!

Paying off your credit card balances is a great way to avoid bad credit. It's ok, and in fact recommended to use credit cards for maintaining a good credit score, but don't charge more than you can pay off each month. If you find you are struggling with your debt, consult a debt management professional now.

Source:
Women's Health Magazine: Credit Card Debt

About the Author:
Karen Lawson started writing stories about birds and surfing at an early age. For more than ten years, she enjoyed a productive corporate career in mortgage banking before moving to Reno, Nevada in 1997. Karen earned BA and MA degrees in English (specializing in writing) at the University of Nevada. Significant areas of research and writing include truth and ethics in creative nonfiction, medical humanities, and the symbolism and lore of birds in American literature and culture. Karen has taught English at a community college, is writing a collection of poetry, and enjoys birdwatching and walking her basset hounds.