If you regularly use your credit card, it's important to closely monitor your statements. While you won't catch a mistake very often, these can occur from time to time.
For example, you may find a purchase on your credit card statement that you didn't make. Maybe you find that a merchant charged you more than they were supposed to.
If you find a mistake on your credit card statement, take these three steps:
- Contact your credit card company: They can give you a rundown on your options, such as filing a dispute. While they're investigating, you won't be responsible for paying anything associated with the transaction.
- Contact the merchant: You may want to do this before contacting your credit card company, as they may be able to resolve the dispute. This saves you the time and hassle of filing a dispute with your credit card company.
- Gather all necessary documentation: For example, if you were overcharged for an item, compare it to your receipt. If this shows the difference, you have all the proof you need.
A credit card is a great financial tool, but only if you use it responsibly. If you combine poor money management with one or more errors, there's a good chance you could find yourself swimming in debt.
If you have more credit card debt than you can comfortably handle, take the time to learn more about your options. You may realize that filing for Chapter 7 or Chapter 13 bankruptcy is the best way to deal with your debt and better manage your money in the future.