Should you consider yourself as the “Average” American then you probably have about 8 credit cards! If you are in Europe, then the average is 6 credit cards per household. Thus credit card debt management is necessary in order to avoid a poor credit score couple with an bad credit history.

Here are TEN steps you can follow to manage your credit.

#1. Remember your credit card is actually a debt card (credit sounds more positive) - No need to apply for and acquire any every “Pre-Approved” Card sent to you. The bank does not know or care about your situation so long as you keep making payment to them. They will keep you paying them for the rest of your life if possible.

#2. Have Your Own Realistic Rules - Ignore the creditor’s rule on what is an “acceptable” level of debt. Your debt-to-income ratio, as they like to call it, is how much debt you can carry to the amount of money you bring home. Although this fluctuates a bit, the average is about 25%. The ideal number is of course is ZERO but for it better to get it down to 10-15%.

#3. Pay More Than The Minimum Required – Unless of course you like paying 500% or more in interest and spend a lifetime doing so, it is important to pay your debt of as quickly as possible. A typical credit card debt of $4,500 would take you about 44 YEARS to pay off if paying only the minimm required. And you would end up paying about $17,000 total by the time you are done! Savvy credit consumers apply wise debt management principles.

#4. Customer Is Always Right – Don’t give in to extortionate annual fees or higher interest rates, always ask for a lower rate. And if you slipped up and got a late fee ask to get it waived. Credit companies prefer to keep a customer happy than allow them to go to a different lender. Your $29-$35 late fee does not come close to the money they will have to spend to get a new customer.

#5. Be weary of Banks dirty tricks - Be aware of what’s going on. The banks are constantly coming up with creative ways to make money at your expense, including charges if you go over the limit fee, late fee, and extra card fee and many more. To add to this, they also have the less obvious fees like account transfer fee, and a fee for talking to a live person instead of a recording. Make sure you look at your statement and check out all the charges. Some of them may surprise you.

#6. Set up Limits - If you know you will have a hard time paying even the minimum balance STOP charging your card. It may sound simple but for millions of Americans it is very hard to do. It is best not to get into that situation.

#7. No Need To Be Greedy – A mix of 2 to 4 cards is the best for a good credit score. Thus, only have what you need, one or two for what you use regularly and pay off every month and the others for emergencies or business. When you start trying to take advantage of all the deals out there the only one who gets taken advantage of are you. Being good at managing a couple of cards is good.

#8. Get all Benefits Offered – If you are sdisciplined enough to pay off your balance at the end of the month then make sure you are getting some bonus for being such a great user. Get the free stuff that you can use. Some extra Flying miles, free gifts, Cash back reward and such like. If you are going to use it might as well get something for your efforts.

#9. Avoid Bankruptcy At All Costs - The statistics are mind boggling. Bankruptcies are at record numbers and the consumer debt for the USA is over 2.4 Trillion dollars! Financial Literacy is a must for the next generation as we are heading into a cashless society. It’s harder to manage what you cannot see. Make sure they understand that the credit card is what pays for food on the table and gas in the car as well as the play station games they love.

#10. Know What Is Stored About You - Obtain a free credit report and make sure it is accurate. About 45% of all credit reports have erroneous information contained in them. Make sure your information is accurate and keep an eye on it regularly.

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