Hard Times

If the credit card industry determines that you're getting into serious trouble, new credit cards will be harder to come by and your present creditors may suddenly shift their collection activities into high gear. When applying for new credit cards - be careful. Don't fire off a dozen applications thinking that one will surely grant you a new credit card. Instead submit one application and wait for a reply before sending out another.

Being hit with a late charge on a credit card is a bad thing. The best strategy is - if you've been making regular payments for a year or so and have just had one late payment - call customer service and ask that the late charge be reversed.

Your chances of success are about fifty-fifty - but it's worth the hassle because that late charge can get you into a lot of problems that will significantly delay your escape from credit card debt.

If you should find yourself out of work for a spell, be careful how you answer your phone. Credit card issuers will call you in the middle of the afternoon on a weekday. If you answer - they will immediately suspect that you're out of a job.

Get an answering machine and use it. Only answer the phone after work hours and on weekends. That will help to give them the appearance that you're still working.

You always have the option of notifying a credit card issuer to close a card for future purchases. If you suspect that someone might be able to charge on one of your cards - this is a smart move. It can also be used on high interest rate credit cards to avoid any further charges by yourself or a family member.

If the introductory rate they offer is unusually low when compared to the others you've been getting lately, either your credit rating just improved - or - it's a come-on, one that you'll never qualify for. Be careful.

But when you transfer a balance or make a purchase, when the statement arrives you're shocked to discover that your interest rate is much higher than you expected. What happened? You've just been "screened".

The low rate they hooked you with was only for those with the absolute best credit ratings and only around 5% of the population falls into that exalted category.

If you've been paying late for six months or so and have ruined your credit rating, you'll stop getting new credit card offers (or will only get offers for 18%+ cards). At that point it may be time to find a good credit counselor. The only other way out will be if you can significantly increase your income sometime very soon.

Credit Card Credit Counselors

Always be sure to interview credit counselors very carefully. Be sure they are independent and get a detailed account of the fees they charge. Always ask "are there any other potential fees"? Even some non-profit counselors charge punishing fees. Be sure they pay your bills and also pay them on time.

If you're contacted by some sort of agent who promises to find you a great low interest rate card with a huge credit limit for a small fee, be very careful. Treat this guy just as you would a used car salesman. Most are scam artists. If he uses an email address from Yahoo or Gmail, watch out as they will have little or no information on him should he take your money and run.