If you are a credit card holder nowadays, it almost seems like you are holding a financial ticking time bomb. As you might have noticed, the whole consumer-sphere is abuzz with the recent controversies regarding credit cards and the credit companies who issue them.
A lot of the buzz that is going around is about the widespread practice among credit card companies of increasing interest rates as well as fees while introducing new fees as well. Because of these changes, many credit card holders are finding it more and more difficult to maintain their credit cards.
What is even more worrying is that, while credit card companies are making it hard to pay off your debts, they are also cutting off your available credit. Some even go so far as to use "balance chasing" schemes which is when the credit company lowers your available credit to a level just above your balance. The end result is that you have a large balance on your card while also having very low available credit. This can completely ruin your credit score as your credit score is the ratio between your available credit and your balance. Also, you will find that you can hardly use your credit card anymore because you don't have available credit left.
So how do you keep your finances from imploding due to all the pressure that credit companies are putting on you? First, now is really the best time to maintain a balance free credit card. You have to try your best to pay your balance every month. In this regard, you might want to think about using your credit card less so that you are sure that whatever balance you have you can pay it off at the end of the month.
While using your credit cards less nowadays is highly recommended, this does not mean that you should stop using your card altogether. That will just give your credit company an excuse to close down your credit account. You will definitely need a healthy credit card line to maintain a healthy credit score. So charge purchases on your credit card now and then. Just make sure to keep it at manageable levels.
Finally, with the way credit card companies are hiking interest rates and fees and cutting available credit, you should really be very aware of any changes that are going to happen to your credit card account. Always read your bills and look out for any communications from your credit company which might contain details about interest and fee hikes or available credit reductions.