Nowadays it seems that credit cards are almost a necessity, which has caused many people to have a huge problem with credit card debt. Many people now have more than one credit card with a balance and you may even be one of those people. If you are one of the millions of people wanting to get out of credit card debt, then you first need to understand what caused the credit card debt problem to begin with.
A credit card is a card with which you are able to use by borrowing on credit. Every time you use a credit card, you are borrowing money from the credit card issuer. Also, each time you use your credit card, you are increasing your credit card debt. And excessive credit card debt can cause a poor credit rating, bankruptcy and subjection to high annual interest rates. 
However, if spending habits are not controlled, which causes credit card debt to increase even faster. What started off as a small credit card debt rapidly becomes a large amount that can seem impossible to pay off.
Now that the credit card debt problem has been explained in a very basic manner, we need the solution to get the problem under control.
1. Limit the number of cards that you have. If your cards offer low interest balance transfers, transfer the balances from your other cards onto the card with the lowest rate.
2. Pay off the entire outstanding balance each month. If you must carry a balance from time to time, pay off most of the balance each month. Stop using the credit card until you pay the entire balance off. Pay on Time, otherwise, you will get charged extra fees.
2. Pay off the entire outstanding balance each month. If you must carry a balance from time to time, pay off most of the balance each month. Stop using the credit card until you pay the entire balance off. Pay on Time, otherwise, you will get charged extra fees. 3. Try to pay off the balance during the interest free period. If your credit card offers an interest free promotional period, make the most out of it by paying off any debt that you have accumulated by the end of the period.
4. Never use a credit card for cash advances. Cash advances are subject to high fees and interest rates.
5. Create a budget by make each credit card purchase only within the framework of your budget. If you can'
t stick to your budget, then don't carry your credit card with you.
4. Never use a credit card for cash advances. Cash advances are subject to high fees and interest rates.
5. Create a budget by make each credit card purchase only within the framework of your budget. If you can'
t stick to your budget, then don't carry your credit card with you.6. Keep all credit card receipts, and reconcile them with your statement each month. Review the statement as soon as you get it. Make sure your monthly purchases fit within your budget.
Last of all, one simple phrase can sum up the solution to your credit card debt problems is If you don't have the money to spend, then don't spend it!!
Last of all, one simple phrase can sum up the solution to your credit card debt problems is If you don't have the money to spend, then don't spend it!!
2 comments:
If you chose a right kind of credit card..it will actually help your credit score and you will be able to get a loan with a very good interest rate..it si all about CREDIT in the real world .baby!!
I was kind of forced to have just a debit card. I found it too easy to dump everything on the "plastic" and before I knew where I was the debts had mounted. I was in a terrible mess with credit cards and had to cut them up and get a personal loan to sort out my finances. At least I feel that I have some of my financial freedom back now.
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