Decide using a credit card? Means that you must be ready to owe with interest charges every month. If discipline pays bills, it’s safe. The danger is that if you lack discipline, then the debt will continue to accumulate because it continues to bloom and eventually swells. Who bothered? You too
Indeed, there are advantages of a credit card if used properly. But whose name is debt, it still has to be paid so that you don’t deal with debt collectors and confiscated property.
Therefore, do not play as long as you swipe your credit card without meeting your needs if you do not want to add to the burden on your financial condition. In order to avoid credit card debt, you need to know the following ways:
1. Allocate Bills for Credit and Manage Use Cards
Have you made a monthly budget list? Then have you entered the credit card bill payment in the budget? If not, from now on, immediately make a budget allocation for credit card payments and a well-planned plan. Don’t ignore it again if you don’t want your financial condition to be threatened.
This credit card bill is included in the obligation. So don’t be happy to receive a salary, then forget about a credit card bill. Credit cards are used to support financial transactions, where funds are loans from banks. So it’s not given free. If it is not repaid, the consequences await.
Set a detailed monthly budget plan, including how much funds are 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 charge for using a credit card depends on the number of transactions carried out, as well as how many cards are used. This is why swiping a lot of credit cards is the same as adding debt.
To overcome this, try paying credit card bills regularly. Set which credit card bills priority you want to pay. Pay off the bills that have the greatest interest. Then pay the minimum payment, then go to another card with lower interest.
Better still, all bills can be paid in full. Expenses become plong, and even if one time swipe a credit card again, the bill is like a new debt. Not old debt that continues to accumulate.
As a suggestion, avoid collecting a lot of credit cards because this behavior will only make you more used to using it.
3. Pay Over Minimum Payment
If you pay 10% of the total bill because you cannot pay the credit card bill in full, it really doesn’t matter. But what is unknown is that this makes it difficult for you to escape from credit card debt, because the bill will gradually swell.
So it’s best, install credit card bills above 50%. Debt is reduced, interest expense is not too twisted, and financial conditions can be healthier. In addition, also remember when the payment due date is so that you do not bear the burden of late fees.
4. Make Comparisons and Choose the Most Appropriate
Before opening a credit card, you should first know the details about the facility, interest, fine fees, and other fees that will be charged to you. Search for information from many credit card issuers, not just one so you can compare products with each other. That way, you can consider which one is more appropriate to your needs, your finances, and its maximum use.
5. Take advantage of 0% interest payments
When making a transaction, always pay attention to what percentage of interest will be charged to you. At present, there are many merchants who provide installments with interest of almost 0%, so why not use it properly?
This can be a good trick using a credit card that can help you overcome monthly financial problems. So use the opportunity as best as possible.
Self-Discipline for Swollen Debt
The main key to avoiding credit card debt is to pay bills every month. Dare to swipe a credit card, it means brave all the risks. If you are wise to use a credit card, and fulfill the obligations of the debt with full responsibility, then life will be calm without being trapped in a vortex of debt. May be useful.