Deciding to use a credit card? This means that you must be ready to owe interest expenses every month. If it’s discipline to pay bills, it’s safe. The danger is that if you lack discipline, then the debt will continue to accumulate because it continues to flower and eventually swell. Who bothered? You also right.
Indeed, there are advantages to a credit card if it is used properly. But the name of the debt, still must be paid so that you do not deal with debt collectors and confiscated property is leftover.
Therefore, do not play as long as you swipe a credit card without need if you do not want to add a burden on your financial condition. To avoid credit card debt bondage, you need to know the following methods:
1. Allocate Credit Card Bill Funds and Manage Usage
Have you made a list of monthly budgets? Then have you entered credit card bill payments in the budget? If not, start now to immediately make a budget allocation for credit card payments and a well-planned plan. Don’t ignore it anymore if you don’t want your financial condition threatened.
This credit card bill is included in the obligation. So don’t be happy to receive paychecks, then forget about credit card bills. Credit cards are used to support financial transactions, where the funds are loans from banks. So it is not given for free. If not paid, the consequences await.
Set a detailed monthly budget plan, including how much money is allocated to pay credit card bills. That way, you can control its usage. Of course, for the most important or urgent needs. When it meets the budget quota, stop using it.
2. Pay Bills One by One
The burden of using credit card bills is very dependent on the number of transactions carried out, as well as how many cards are used. This is why swiping many credit cards is tantamount to adding debt.
To overcome this, try paying credit card bills regularly. Set the priority of which credit card bills to pay first. First pay off the bills that have the most interest. Then pay the minimum payment, then just bill the other cards with lower interest.
Better yet, all bills can be paid in full. Expenses become plong, and even if one day swipe a credit card again, the bill is like new debt. It’s not old debt that keeps piling up.
As a suggestion, avoid collecting a lot of credit cards because this behavior will only make you more frantic using it.
3. Pay Above Minimum Payment
If you pay 10% of the total bill because you can’t afford to pay the credit card bill in full, there’s really no problem. But what is necessary to know, this actually makes it difficult for you to escape from credit card debt, because the bills will continue to swell over time.
So it’s best, installments on credit card bills above 50%. Debt is reduced, interest expenses are not too wrapped around, and financial conditions can be healthier. In addition, remember also when the payment due date so that you do not bear the burden of late fees.
4. Make a Comparison and Choose the Most Appropriate
Before opening a credit card, you should know first the details about facilities, interest, penalty fees, and other fees that will be charged to you. Look for information from many credit card issuers, not just one so you can compare products with one another. That way, you can consider which is more in line with your needs, your finances, and its use more optimally.
5. Take advantage of 0% interest installments
When making a transaction, always pay attention to what percentage of interest will be charged to you. Nowadays, there are many merchants that provide installment relief with almost 0% interest, so why not use it well?
This can be a surefire trick using a credit card that can help you overcome monthly financial problems. So make the most of the opportunity.
Discipline Yourself So That Debt Does Not Swell
The main key to avoiding credit card debt twists, is the discipline of paying bills every month. Dare to swipe a credit card, also means brave with all the risks. If you wisely use a credit card, and fulfill obligations on these debts with full responsibility, then life will be calm without being stuck in the vortex of debt. May be useful.