According to some research by the Federal Reserve, revolving credit (namely credit card debt) has grown to its highest rate in months, 8.5%. On the flip side, the savings rate dropped through the floor to its lowest rate in over a year. More new credit card accounts have sprouted up in last year’s fourth quarter compared to the previous year
Credit cards are certainly more convenient than carrying and counting cash. Paying with plastic also jives nicely with booking travel, making online purchases, and gassing up your vehicle. Those older commercials really had it right – paying with plastic is easy. Almost too easy.
With all the new credit card accounts springing up, credit card debt is likely to increase as well. Now it’s more important than ever to remember some of the best tips you can use when spending on your credit card. Pay your balance in full on time whenever possible. Avoid carrying a balance if you can help it. Don’t spend more than you can pay back. As long as you use good discipline in your spending habits, you should be able to avoid crazy credit card debt, even if you are one of the new credit card account holders who recently joined the masses.