4 Basic Credit Card Errors

This was a cool article I wanted to share with you. These are mistakes anyone can make.

Christian Science Monitor:

1. Not Paying Attention to Due Dates

This recently happened to me. I got my email notification of the statement, logged it in the back of my mind that I needed to pay that bill and unfortunately got busy and never bothered to pull that statement out of the back of my mind until two days after the bill was due.

I know what you’re thinking – just automate your bill pay! Yes, I should do that, but I do like to take a look at what’s on the statement and make sure everything is correct. This forces me to do that.

Making a late payment even if it is only by a few days can rack up ridiculous charges that only compound your debt. Those annoying charges can also have an impact on your credit report. Being vigilant about paying your debt and paying it on time is key.

What I’ll do is give American Express a call and see what they can do for me. Since I don’t carry a balance, normally pay on time and have been a long-time, loyal customer I’m hoping they’ll waive those charges for me.

2. Not Paying Your Bill in Full Each Month

This is where it all begins doesn’t it? You’re a willing victim to the crazy cycle. You buy something you can’t afford and think, “I get paid in two weeks, I’ll just put it on the credit card and as soon as I get the bill I will pay it off” and then something else comes up.

Emergencies happen or you find some other trinket you want to buy and you put that on your credit card too. At the end of the of the month you receive a hefty bill. What do you do? If you only pay what you can and wind up leaving a balance on the card that accrues interest at insane amounts, you’re asking for trouble and perpetuating the cycle!

Just think, with a little discipline and some self control you could’ve avoided unnecessary spending and used that money to open a Roth IRA or fund some other type of investment account.

3. Not Realizing You Have Credit Card Problems

Okay, this sounds silly, how can you not recognize that you have credit card problems? Well, it’s actually fairly easy. I spent the majority of my college years and shortly after living the high life without any regard to the thousands of dollars I was racking up!

I didn’t even realize that I had a credit card problem. I just figured this was a normal part of existence and that once I made more money, then I would pay off that debt! No big deal right?

Little did I realize that I needed to make some drastic changes! Get real with yourself and ask if you’ve got some spending issues.

4. Not Negotiating With Credit Card Companies

It puzzles me that more people don’t call their credit card companies to negotiate with them. You can negotiate things like interest rates, late payment fees or even payment plans. If nothing else, it doesn’t hurt to give them a call and find out what they can do for you.

The person who never asks, never receives. Now of course there is no guarantee that the credit card company will do anything, but wouldn’t it be nice to know if they were willing to do something?

Getting out of debt is not easy, but don’t make it harder on yourself by making simple mistakes that can easily be avoided.

If your spouse dies, then do you have to pay the credit card?

My understanding of credit cards regardless of whether you live in a community property state or not is that only the primary cardholder is responsible if it is a individual account. Even if that cardholder authorizes others to use the card, only the primary person is responsible. If the primary card holder passes away, then the authorized cardholders are not held responsible for the debt.

This is different from a joint account where both users were approved jointly as co-applicants. In that case, both are held responsible for the debt even if one of them passes away.

Check out this HSBC recent story in the Chicago Tribune:

For most of his adult life, Elmer Duncan was a loyal Carson Pirie Scott customer.

By his wife's estimation, he first opened an account with the Chicago department store in the mid-1950s. Ruby Duncan said it was her husband's preferred place to shop, and he always paid his bills on time.

When he died July 17, Elmer Duncan left a $2,361.04 balance on his Carson Pirie Scott credit card, which is administered by HSBCbank.

Since her name was never on the account, Ruby Duncan sent HSBC a copy of her husband's death certificate and assumed the debt would go away.

Instead, HSBC sent a new bill — with her name on it.

"It's never been my account. I never signed any papers that said it was my account," she said. "I thought it was very distasteful."

In November, HSBC sent the account to collections in Ruby Duncan's name. Fed up, Duncan quit trying to contact HSBC and began ignoring their calls.

"I'm still grieving for my husband," she said. "We were married 38 years. That's a long time. I didn't need all the aggravation that I got from them."

After realizing the problem would not go away, Duncan wrote What's Your Problem? in late January.

"I pay my bills, and my credit is good," she said. "They tried to mess up my credit, and that's what really made me angry. Your credit is part of your life. As old as I am, I still want my credit to be good."

Duncan said that if the debt was hers, she would pay it. But the credit card in question was strictly her husband's.

The Problem Partner, Kristin Samuelson, contacted HSBC spokeswoman Kate Durham, who reviewed Duncan's concerns.

Two days later, HSBC decided to erase the $2,361.04 debt and correct Duncan's credit record.

Durham said she could not discuss the specifics of Duncan's case, citing privacy concerns. But she said the company's goal is to ensure "all of our customers receive a positive card experience with each and every interaction."

"Since learning more about this particular situation, we have since resolved the matter in Ms. Duncan's favor," Durham said.

Duncan said HSBC sent her a letter telling her it had erased the charges and would inform the credit bureaus within 90 days.

"I'm happy that they decided to do that, but I felt they really kind of messed me over because they kept trying to send letters," she said. "They tried to mess up my credit. They knew they weren't supposed to do that."