Staying out of Credit Card Debt
There are few options that match the convenience of making payments the way credit cards do. This however is usually at a huge cost, most people find out only when the bill arrives. Many people are in credit card debt, which leads them to see just how costly the setup really is. Good thing there are things one can do to avoid such scenarios. There is an urgent need to get people off credit card debt.
The best way is to keep off credit cards. This may seem like the most basic of solution, but following through is not as such. Its convenience has made it difficult for most people to stop. Cash payments should become the new norm. Cash payments are closer to you, which makes you see the need to stop spending so much.
You need to have a budget. t needs to be written as well as realistic. You need to put down all your monthly income and all the expenses expected. This will make it easy for you to know the things that use up your money. You will then determine where best to direct your money. That should leave you with some to pay off the credit card debt.
You need to identify the card with the highest interest rate. You need to stick to the one that has the lowest interest rate. You then get rid of the others. You need to look at what different banks have to offer, and find the one with the most favorable terms. You can expect some to take in your balances from other banks. This makes payment for all those debts much easier for you, since you are dealing with lower rates.
You can also ease your burden through the consolidation of all your balances from different cards. A way would be to take a short-term loan to settle all those credit card debts. This leaves you with only one debt to focus on, which is less stress than having to pay off all those different debts. Personal loans are also much easier to deal with when compared to credit card debts. Lower interest rates are your friend at this point, since you will end up paying less for the same debt.
You may also opt to pay more than the expected minimum in a month. This is great, since you will have be lowering what you need to pay faster. Interest rates are usually a function of the expected payment amounts. This method helps keep that rate down. There is no better incentive to pay more per month. This is great for making the debt disappear fast.
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