FMOOD 0027: The Credit Card Danger Zones - a podcast by Tom Merlino | Tom is inviting you to follow him on his journey to get out of debt and get into prosperity.

While credit cards are not necessarily dangerous by themselves, we may find ourselves in what I call the credit card danger zones. We need to be aware of these dangers and take the appropriate actions in order to avoid these at all costs.

 

Some of the danger zones that I cover in this episode are: getting dangerously close to the credit limit on the card, not preparing for the 0% introductory APR expiration, and the combination of not preparing for the APR rate hike after the introductory period and having charged enough to be so close to the credit limit that the interest applied may just put you over the credit limit on the card.

 

The huge danger here is that some credit card companies charge an over-the-limit fee, and even worse, they may even hike up your APR for going over your credit limit. All credit cards are different, and while this may not apply to your cards in particular, you will want to read the fine print to make sure of this so you know precisely where you are in relation to the danger zones that are present with most credit cards.

 

If you do find yourself in one of these danger zones, my recommendation is to get yourself out first and foremost. Even if you had planned on doing a debt snowball plan or paying your cards off from highest APR to lowest APR, you need to get yourself out of the danger zone first. Put a solid cushion in-between what you have borrowed and the credit limit of the card, then stop using the card entirely and eventually pay it off with your debt payment plan of choice.

 

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