6 Fundamental Tips For Paying Off Credit Card Debt
The credit card is a hand in hand when making payments, combining practicality with some advantages, such as the possibility of parceling values, for example. However, you need to be careful and use the card sparingly so as not to get into debt.
It is not uncommon to meet people who end up embarrassing themselves with credit card debt and committing themselves to expenses they cannot afford, and which seem to have at the end. To avoid this or solve the problem, check out our tips today:
Learn how to use the card
When using the card, always keep in mind the percentage of your budget that you can commit to that expense and what amount to be paid in that month in full. Making only minimum payments is the first step towards building a debt that may seem priceless in a short time!
If possible, always note the card’s expenses for self-control, setting and respecting a monthly limit for its use. It is not because the card offers a limit of 3 thousand reais that you need to spend all this amount, especially if your budget does not support such a debt.
Review your spending
Once in debt, try to cut unnecessary or non-essential spending from your monthly budget to save enough to pay off the debt. Card interest is often calculated at high rates and is self-interest, which leads to the famous snowball.
Although prescribing in 5 years, the ideal is that the client does not wait for the time and get his debt with the card as soon as possible, avoiding possible embarrassment and lawsuits. Making a temporary sacrifice may be enough to get the accounts back in order.
Deal in debt
If expenditure restraint was not enough, negotiating debt may be interesting. A good alternative is to try to divide the debt into fixed installments that fit your budget. Always keep in mind that negotiating is an exchange of proposals and that you are not obliged to accept the first one offered to you straight away. Always look for the best conditions so you can pay off your debt.
In case of various debts, note the interest
If you have more than one credit card debt, note the interest rates charged on each of them. Many times we are led to think that lower debt repayment should be the priority because it would end that issue, leaving it focused only on the larger debt. However, the focus should always be to pay off first debt which charges the highest interest rate, because it is precisely this rate that makes total debt grow.
Do not use a card to pay another’s debt
By using a credit card to pay another, you will only be exchanging your hands, but remaining within the interest rate charged by management, which is usually calculated on the basis of the highest interest rates. market
Swap debt for a smaller one
If you want to choose to make a new debt to pay off your debt card, keep in mind that you need to make an exchange that is advantageous in terms of interest. Look for loans in the market that cover lower rates than you have already paid and apply for the amount needed to pay off all the debt with the card. You will still owe the same amount, but at lower rates, which may facilitate your payment.
A useful credit tool, the card becomes the villain of many homes by giving rise to astronomical warnings. By following our tips, you can solve your credit card debt as soon as possible and catch up with your financial life! Have you had problems with your credit card? How did you solve the situation? Comment and share with us your experiences!