Conditions in which pegs are larger than poles often afflict a person. The causes are very diverse, but the most common cause is because of a lifestyle that is too high. As result salaries earned every month are not able to offset the credit card arrears that are too large.
Very sad indeed, but fortunately there are many ways you can do to anticipate debt in arrears. If accompanied by the intention to pay, believe credit card debt can slowly be paid off. Interested in trying the tips?
Understand the Large Debt Interest Rates
First of all, try to understand the amount of interest that must be paid every month. Because the amount of interest charged to each credit card holder varies, depending on the amount of debt and the period of installments.
It is possible that the credit card interest rate at one bank is greater than the other bank. This is certainly very unfortunate because it will affect your ability to pay off credit card debt.
In the process of paying installments, try paying the installments with the highest interest rates. If the installments are paid off, then the burden will automatically decrease and you can focus on lower credit card installments.
Limit Credit Card Transactions
The more transactions, the greater the costs to be borne every month. If income is insufficient, get ready for debt. Want? Obviously not because debt will make your life miserable.
So that repayments do not swell, try to limit your credit card transactions. For example, from the initial USD15 million per month to USD10 million per month. If you feel this amount is still too large, please reduce it as desired.
Considering that transactions are increasingly limited, reduce the purchasing power of goods that are not needed. Focus on needs rather than wants, so that expenses never go out of the way set.
Change Your View of Credit Cards
Credit cards are indeed very powerful. Only with one swipe, then the desired goods can be paid off. But do not easily fall asleep with supernatural powers like this. If you do not manage cards wisely, there will be more debt.
Keep in mind, credit cards are not a place to pile up debt but as a tool that facilitates daily transactions. Change your perspective on credit cards so that they are used more precisely.
Actually changing the perspective requires a short amount of time, especially if this principle has been applied for a long time. But nothing is impossible if accompanied by intention and sincerity. Believe me!
Change the Credit Card Payment Pattern
Credit card users are allowed to pay bills of 10% of the total bill per month. This minimum payment facility is often used by many people, especially when financial conditions are deteriorating. As a result, debt is never paid off but is increasing from day to day.
If you have previously applied this method, please change it immediately. Avoid paying minimum bills, but try to pay bills in full or in full every month. If the bill is USD1,200,000 per month, then pay USD1,200,000.
If the monthly installments are too large, submit a request for an additional deadline to the bank. If the bank grants the request, the installments paid in the following month will automatically decrease. But assuming that the repayment period will be longer.
Look for Additional Income
How much income has been obtained each month? If your current income alone makes you unable to pay debts, believe that the debt will be more difficult to pay off. The savings made did not have a big impact because basically expenses have been greater than income.
Start thinking about ways to increase income. Do not hesitate to work part-time in the remaining free time to increase the coffers of money. Although the income obtained is the only ¼ from the main salary, but it is already enough to pay off debt.
There are many side jobs that can be used as alternatives, such as selling online or selling light snacks in the office. Raise the selling price just to make a profit. Then, save these profits to pay your credit card installments next month.
Stop using credit cards
Sometimes because you are accustomed to using a credit card, it will feel awkward if you have to trade with cash. But what can I do, rather than getting more bloated credit card bills, it’s better to stop using the card for a while.
No need to worry, in just a few months. After the credit card debt is paid off, you can return to using a credit card to transact. But with a note must be used wisely to avoid debt as it used to be.
Apply this method to all your credit cards. Thus, the total transactions every month can be controlled in such away.
Close the Credit Card for Forever
If the method above doesn’t work, you can’t help but let go of a credit card forever. Or in other words, do credit card closing. This closure can be done directly at the credit card issuing bank.
Before closing, all bills on a credit card must be paid in advance. If not paid in full, then the closing process will be delayed for a while until the bill is paid off. Because actually banks will not want to lose.
This payment is not only on the principal debt, but also interest, annual fees, and late fees (if any).
The anticipation of Debt Before Financial Conditions Increase in Severe
Before the financial condition is already bad or damaged, it is better to anticipate all debts. Ranging from credit card debt whose nominal is small to large though. To be more helpful, do some of the tips that have been explained above.
Always remember that credit cards are only a tool or a means to facilitate transactions. So do not try to use it on anything else, especially if the aim is to dissipate.