Credit card dues can be worrisome. They come with interest and it is seen that almost the entire salary goes behind the debt repayment. Well, there can be situations, but nothing as serious as to overspend in the card. On a survey done, it is found that “credit card debt” is a serious problem with many people around. People from different professions can have the same problem but it would be wise to consolidate the debt for a debt free life.
Consolidating the credit card debts requires a neat understanding on why the situation raised, what is the immediate requirement and what would be future measures. Here are some points that would not only help you to consolidate the credit card debt but any other market debt for that matter. At the same time, it would help you get closer to a “debt-free” situation.
- Pay the total amount due: The mistake most of us commit is to pay the minimum balance and leave the rest of it for the “next cycle”. That too when the “next cycle” turns up, it is the minimum amount that we pay. This is wrong. Paying the minimum amount due unnecessarily enhances the interest charges and that in turn creates further due. The effort should be to pay as much as one can afford to re pay in full. Full payment means that no interest is charged on the card any further. If the total amount repayment gets tough, the best option next would be to pay as much as possible. This would lessen the amount relatively and interest charged would be understandably less. Thumb rule should be to swipe the credit card only after the previous debt is full cleared.
- Pay the card with higher interest rate: Different bankcards would have different rates. Some higher than the other. Therefore, the trick here would be to just repay in full the card that hooks you with the higher interest. Once repaid, the rest of the due looks easier to be paid off.
- Get the help of Debt conseling team: There are many countries that have a debt counseling team that helps you to work out a plan, either by some modification in your existing life style, or by making a clear note oh the “safe amount” to be spent. Following them religiously can surely help.
- Take to the banks: This helps too. If the debts rises as high as sky, and the repayment options are less or unstable, just talk to your bank. Explain them your situation. Most banks have flexible repayment options where the loan term is enhanced with reduced installments. Go for it. That helps.
The golden rule is to “avoid shopping unnecessary stuffs”. This is what generally perks up the bill. Debt consolidation should be done as soon as the dues are rising. This ensures that the debt does not step beyond a repairable stage. It is good to go for suggestions to improve the current scenario and best to learn from the current scenario to avoid further fuss in future.