The 1 Thing Every Credit Card Holder Should Do Now

By
A A A

Credit cards can be incredibly useful tools for managing your money. But used incorrectly, they can also devastate you with debt that's hard to overcome. What's the best way to handle your credit?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the one thing every credit card holder should do right now: commit to paying off outstanding balances. Dan notes that cards can be very useful when you don't carry a balance, but that when you open yourself up to the high interest rates that card companies charge, you pay more than you should while benefiting JPMorgan Chase , Citigroup , and a host of other card-issuing banks. By contrast, Dan suggests plenty of other lower-interest debt that's arguably smarter to have, such as the home loans that Fannie Mae , Freddie Mac , and other agencies help to keep rates low. With the Fed only likely to push rates higher in the near future, committing to getting rid of credit card debt is a smart move at any time.


A card-issuing bank worth investing in
Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as " The Only Big Bank Built to Last The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report new report. It's free, so click here to access it now click here to access it now.

Fool contributor Dan Caplinger owns warrants on JPMorgan Chase. The Motley Fool owns shares of Citigroup and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Stocks

Referenced Stocks:

Motley Fool

Motley Fool

More from Motley Fool:

Related Videos

Stocks

Referenced

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com