Are you “playing” smart with your credit cards? How are you doing with your credit card in comparison with others?
Maybe you have cut up all of your cards. You wouldn’t be alone. Twenty-nine percent of CreditCards.com poll respondents reported that they did not have a credit card in February 2010. This is a 10 percent jump from June 2009. The total number of cards in circulation in United States was down 6 to 11 percent in 2009, depending on which card was used.
Instead, people are switching to debit cards with an increase of 1 to 18 percent, Master Card and Visa, respectively. Not a bad idea for those who have trouble controlling their use of a credit card.
Yet, there are others who still have trouble keeping their credit card debt down. According to CreditCards.com the average credit card debt per household is $16,007. If you have a high balance, work to bring it down. You are wasting money paying so much interest.
We all need to be like the elderly. Three in four cardholders age 60 or older paid their credit cards in full in the past 12 months. (Source: FINRA Investor Education Foundation, “Financial Capability in the United States, December 2009)
Even though credit card purchase transactions in the U.S. were down 4 percent in 2009, the transactions were plentiful. It’s estimated that there are 10,000 payment card transactions made every second around the world, according to the American Bankers Association.
When you use your credit or debit card, protect your card the best you can. Identity fraud victims rose 12 percent last year. When it is known how the person’s identify is stolen, 43 percent of these incidents involved lost or stolen wallets, checkbooks and credit and debit cards.
Remember to check your credit rating this year and every year. For a free annual credit report go to Annualcreditreport.com or call (877) 322-8228. Make sure your credit card is working for you and not against you.
Do you have any concerns about what your credit card company can or can’t do under the new credit card laws? Any questions about how to improve your credit rating? Contact me with your questions and/or concerns.