Using credit cards wisely

During tough economic times, it might be more tempting to rely on credit cards. Here's how to use the cards wisely or get out of debt if you're already in trouble. Find advice about creating a household budget, improving your credit rating and finding the best card for your needs.

Created by Author

K.M. Schwartz

Subject: Personal Finance

Tags:borrowing, budgeting, coping, Credit, credit cards, debt, economic downturn, economy, layoff, loans, money, recession, spending

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Inside the Guide

Paying off credit card debt
Knowing your credit score

Budgeting
Find the best credit card for you

Credit counseling
Games and more resources

Credit vs. debit cards

Paying off credit card debt

Most experts advise credit card holders to stop making excuses and start paying off their balances. But personal finance expert Suze Orman recently revised her advice for those without an emergency fund during these tough times.

Real-life examples

http://www.redbookmag.com/money-career/tips-advice/pay-off-debt

Redbook magazine readers share how they kicked the credit card habit. Find their spending tips and favorite Web sites and books.

Tips from The Motley Fool

http://www.fool.com/personal-finance/credit/9-ways-to-pay-off-debt.aspx

Credit card calculators

http://www.creditcards.com/calculators/

Determine how long it will take you to pay off a card.

New advice from Suze Orman: Pay just the minimum

http://www.oprah.com/article/oprahshow/20090311-tows-credit-card-payoff/1

Personal finance expert Suze Orman now says those with little or no savings need to build an emergency fund first.

On "The Oprah Winfrey Show" April 2, 2009: She had this to say:

"If you have an unpaid credit card balance [and] not much saved up in emergency savings, I need you to listen up. My advice has changed. I want you to only pay the minimum due on your credit card balance, and instead, make it your top priority to build as much of an emergency cash fund as you can."

Budgeting

Pay attention to where your money goes each week, month and year.

A 5-minute guide to budgeting

http://articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/Your5MinuteGuideToBudgeting.aspx

'Budget' is not a four-letter word, but many people avoid it like one. These 20 tips can help you face up to your finances and achieve your monetary goals. Also find links to a savvy-spending quiz, ways to earn an extra $100 a month, and money rules to live by.

Envelope budget system

http://familyfinances.suite101.com/article.cfm/envelope_budget_system

Live within your means with a cash budget system

Step-by-step advice for setting up a family budget

http://www.ehow.com/how_4827376_family-household-budget.html

Household budgeting software

http://quicken.intuit.com/?priorityCode=4942200000&cid=pi_yahoo_tlp_home

Quicken is one of the top names for personal money-managing software.

Household budget software

http://www.microsoft.com/money/default.mspx

Along with Quicken, Microsoft Money is another top name among money-managing software programs.

Credit counseling

Need to speak to someone? Find a reputable credit counselor in your area.

National Foundation for Credit Counseling

http://www.nfcc.org/

Advice from the Federal Trade Commission

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm

Credit vs. debit cards

These cards look the same, but a key difference is that a debit card is linked to your banking account and money is debited immediately.

Understanding differences

http://www.creditcards.com/credit-card-news/debit-or-credit-differences-1271.php

Choosing credit or debit in everyday life

http://banking.about.com/od/checkingaccounts/p/debitvscredit.htm

Debit card dangers

http://www.msnbc.msn.com/id/23129824/

10 debit card dangers

http://www.thestreet.com/newsanalysis/opinion/10364834.html

What's good about debit cards?

http://www.helium.com/items/1236584-debit-cards-the-advantages-of-using-debit-cards

Knowing your credit score

You've probably seen the "free credit report" commercials on TV. Maybe you can't get that jingle out of your head. But do you know your score, why it's important, and how you can improve it?

Credit score overview (Wikipedia article)

http://en.wikipedia.org/wiki/Credit_score_(United_States)

Get your report for free

https://www.annualcreditreport.com/cra/index.jsp

You can request a free credit report once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. Check for errors in your report and unusual activity that could indicate identity theft.

Find the best credit card for you

Maybe you are handling credit wisely, but are you getting the best deal? Which offer is right for you? Do you want frequent-flier miles? Cash back? A better rate? No annual fee?