Tips on Managing Your Child's Credit Card

While most people will conclude that credit cards should not be given to teens, there are a number of reasons why issuing credit cards to our children can actually pave the way for them to learn discipline and financial accountability.

Handling Finances

I have mentioned in one of my more previous entries that this is the best time to take steps toward debt management, if you still have some left carried over from 2008. Being able to free yourself from any outstanding loans will more than just relieve you. It will also be a good training towards discipline. Living within your means is easier said than done. What with all the advertisements enticing you of your need for things to survive!

Truth to tell, a lot of people have gotten deep into this issue because of either payday loans or credit card debts. Ideally loans should be availed only in case of emergency and credit cards should be for those who are responsible enough to pay the monthly installment that was availed in zero interest purchase. It can also prove to be convenient way to shop – minus having to bring cash with you. But this will only work if you consider paying it off right away the minute you get the chance to.

The privilege of getting a loan and being able to use credit cards always come with responsibility otherwise you might just find yourself in neck deep debt with crazy interest that you end up paying instead of the principal amount.

This is the best time to rethink the way we handle our finances.

Taking Steps Towards Financial Freedom

If there was anything that the hubby and I did right in settling our major obligations in 2008 it was debt consolidation. The previous years have gotten us in medical bill debt that we thought we would have to shoulder for several more years.

Being able to consolidate debts made it easy for us to keep track of everything in one account rather than keep a record of several accounts. It was a blessing that we were able to keep interest to a minimum which is also one of the reasons why we easily got off those debts. We even managed to terminate credit cards, which we are very happy about. We decided that we will keep a couple for each of us. What’s more is if any of the couple of credit card companies we are still with decides to charge us with annual fee, we are free to end our relations with them. This reason always works for me, an agent will have a supervisor speak with me and they will happily waive the annual fee without fuss. The cards are just around for emergency purposes and if we need to buy anything at all, which we pay right away.

It would be a great goal to make to be free of any outstanding debt or at least take steps towards paying off major ones. If it is government debt help that you need, check with 3debtconsolidation.com.

File Those Bills Payment Receipts!

As organized as I try to be, for some reason, I lost one $13 credit card payment receipt during the holidays. I was shocked to receive a billing statement over email with an amount that of more than $31 than I expect. I make sure I pay the full amount of my bill before the due date, so alarmed as I was, I called Citibank to ask for the breakdown. It turned out, I got penalized and the payment never got through. I always pay via the bank and thought maybe the bank failed to upload the payments over the holidays.

After rummaging for all probable place I could have placed it, I finally saw the receipt which was collected alongside all the other receipts (probably by my weekend cleaning girl), it's on top of the fridge. I found out that the account number that it got credited in was the old Citibank credit card that was long terminated. I called Citiphone again (for the fourth time) and they saw that the payment was indeed credited to the terminated account. I faxed the transaction receipt and they are going to reverse all charges very soon! Whew!

I always file my receipts, but because of busyness and because of the amount of the receipt was too small to bother with, I took for granted to keep it until I receive a confirmation of the receipt of payment. No, I don't keep my receipts for ages to gather dust and all. I have my email archive to do the job- a confirmation receipt is enough. Another lesson learned by yours truly. As much as I was confident that I paid my obligation, it was not enough. I have got to get hold of the receipt for proof until it gets credited and I have received confirmation.

Meanwhile, I am happy that I don't need to pay that extra $31 (charges and penalty) for that would have been treated as $13 unpaid bill. Atleast the company gave me credit for the good standing and prompt payments I have always had with them. :-)

Credit Cards: Maximizing the Benefit

Are you one of those who periodically use your credit cards? How do you manage the way you utilize the plastics? Truth to tell, it is very convenient to carry credit cards than to lug around with a thick amount of cash in your wallet. But before you go apply for credit card there is only one thing you need consider. Do you honestly think you will be responsible enough to pay the exact amount that you paid on credit before the due date?

This is important to take note of if you would rather have the interest work for you and to be able to maximize the benefits of being a credit card owner. Yes, you could actually tell yourself you can pay for the items on installment. The fact is if you got this embedded in your mind that you will get used to using your cards and pay off what you actually owe on installment. This is what a lot of people take for granted at first until they find out too late that they are deep in debt and are only paying off interest instead of the principal. Think about it.

That’s basically the only thing that you need to be definite about before you ever consider getting a credit card, the other things are just minute ones that will still base its foundation to this very issue- responsibility. It is a mistake to apply for a card if your sole purpose is to purchase items that you cannot afford in reality. Living within your means will always do you good.