Holly Springs, NC -- (SBWIRE) -- 06/25/2010 -- CESI Debt Solutions, a Raleigh, NC based nonprofit organization that educates and counsels consumers on how to become debt-free has released the Top 5 Things to Know About Using Credit Cards as part of their Credit 101 series created to help consumers manage their debt.

You can also find more information on this and a variety of topics on the CESI Debt Solutions YouTube page at http://www.youtube.com/mycesi.

Marco Guerrero, a certified counselor at CESI Debt Solutions, presents the tips in a Spanish-language video here: http://www.youtube.com/watch?v=SHqD4MQJlSE.

The Top 5 Things To Know About Using Credit Cards

1. Do not use your credit card to make everyday purchases - Items like food, clothing, and gas SHOULD NOT be purchased with a credit card. Using your credit card as a substitute for cash is a habit that can quickly lead to insurmountable debt. For ordinary purchases, either use cash or a debit card or rethink whether or not you really need to make the purchase.

2. Don’t get into the habit of making minimum-only payments - Making only the minimum payment each month increases the amount of time and the amount of interest it will take to pay off your debt substantially. To pay your debts off quicker and cheaper, you should pay as much as you can on your balance each month without affecting your other necessary expenses.

3. Stay within 30% of your credit limit - If you have a $1000 credit limit, try to never utilize more than $300 of it. A large part of your credit score considers the amount of debt you have. Keeping your balances low helps you maintain a good credit score and lower balances are easier to manage. if you keep debt balances low you can comfortably live month-to-month.

4. Purchase items you NEED versus those you simply WANT - We’ve all used the word “need” to describe something we really just wanted badly. Using your credit card responsibly means recognizing which things you need and which you just want. If you have to decide between going to a movie or paying your electricity – the choice should be easy.

5. Pay your bill on time, EVERY time - Late payments will cause multiple problems for you. The creditor will charge you late fees and may report you as late to the credit reporting agencies which can dramatically impact your credit score in a negative way. Paying on time every month is the best way to maintain a positive relationship with the creditor and build a good credit score.

CESI Can Help You
Debt counseling and debt management, CESI’s key services, help you create a budget and action plan entirely, pay off your credit cards and improve your credit score. Debt settlement programs may get you out of your current debt, but you will end up pay large monthly fees and come out with poor or unimproved credit scores and no understanding of how to avoid getting in credit card debt again.

Every month, 500 Americans become debt free thanks to CESI Debt Solutions’ debt management counseling and programs.

For more information on CESI Debt Solutions, visit http://www.cesidebtsolutions.org.

About CESI Debt Solutions
CESI Debt Solutions is a not-for-profit organization for consumers who want financial freedom. CESI offers a complete life cycle of services: debt management, housing counseling, credit counseling, financial education and pre-bankruptcy counseling. Since its inception in 1998, CESI has helped hundreds of thousands of consumers nationwide improve their money management skills as well as credit and debt responsibilities. For more information, please visit http://www.cesidebtsolutions.org.