Category Archives: Loan Tips
5 Short Tips To Achieve Zero Credit Card Balance
Credit card debt is not uncommon. The main reason for this is the undying craze for this glossy piece of plastic. Some are so in love with it that they have piled up multiple credit cards in their drawers! Now, its no wonder that you find it tough to manage your monthly payments.
Its no use crying over spilled milk. If you think youve put yourself in grave debt, thanks to your habit of procrastination in paying bills, you need to gear up to save yourself! The first thing to do is taking a hard look at each of your bill on plastic money. Sum them up. Then, examine the interest rates on them. Determine how much approximately you pay every month. Next comes the toughest part you need to stop using your credit card for some time.
Itd be wise to plan a household budget every month. This way, youd know the amount of money you can spare for paying your bills. Make a list of all your expenses, right from big power bills to a small grocery store bill. If you find (to your horror) that your expenses exceed your income, there are two things you can do: cut down your expenses and see what things you can do. Do you really need to order large sized pizza twice a week? If you find this impossible, look for an alternate source of income fast.
You need to become disciplined in order to come out of your credit card debt. Besides this, you need to have a strong will to combat your debts. Do not succumb to the temptation of eating out often, subscribing to memberships, shopping just for the sake of it. These are things that you can do without, at least for now. The time required to pay off every single bill depends on the due amount and the amount of money you are able to spare every month in this regard.
Short Tips
*Keep just one credit card for use. If possible, dont use any for the time being. *Follow your budget like the Bible. *Keep a diary of your expenses. This way, you can know what expenses are absolutely essential and what you can do without. Youll be surprised to know how many dollars you waste on unnecessary spending. *No matter how tempting it looks, avoid taking cash advance. This will add in more interest and fee once you make the transaction. *Refrain from vacationing to exotic spots or doing lavish purchases until you pay off your complete credit card balance.
Once youre done with paying your bills, be wiser to yourself in the future and use your cards carefully. If youre in the struggling phase of your life, its better to get a debit card or pay by cash. This way, youd be spending only what you have in the account. Remember, plastic money is quite tricky. Unless youre on your guard, it can give you a great financial fall.
How To Get Out of Credit Card Debt 101
Having problems with your debts? Starting up the year with stress because of the charges youve incurred last holiday season? Is there a way to get out of debt more easily? This article will discuss some tips on how you can get free from your debt problems effectively:
Transfer your high rate credit cards. If you cant pay off your credit card balance in full by the end of the month, its a good idea to transfer them over to another credit card that has no interest. Also, if you have more than one credit card, check which one of your cards have the lowest rate of interest so you can transfer over your balances.
When transferring credit card balances, check if there are transfer fees or penalties. If youre opening a new credit card, check how long the zero interest rate will last. Promo periods usually end by six months while other credit cards offer a longer time period of up to a year or even more. Its important that you complete your repayment before the zero interest introductory offer expires.
Focus on paying off your credit card debts. Dont be content with just paying the minimum of your credit card charges. Make it a point to pay off your balances in full as much as possible. Concentrate on paying your charges on your highest rate credit cards and work your way down to those with the lowest interest. This way, you can avoid paying for additional interest and penalty fees.
Put your credit cards at halt. It is advised to stop using your credit cards until youve finished paying off all your bills. Dont give yourself a hard time paying off too many bills at one time. Dont risk getting stuck in credit card debts just because you kept charging more expenses on your cards. Exercise discipline and avoid debt problems.
Check your credit limit. How much of your credit limit have you used in purchasing for the holidays? Remember, experts advise all credit card holders not to go beyond 40% to 50% of their allowable credit line. If you go beyond that, you risk getting stuck in debts and there is a possibility that your creditors will increase your rates because youll be considered as a high-risk borrower. To avoid such problems, make sure that you stay within below 40% of your credit.
Check your credit card statement. Do you take the time to study your credit card statement? If your credit card enables you to access your account online, take this opportunity to make sure that all charges on your credit are accurate.
Check if your payments are aptly recorded by your credit card issuer. If you have any disputes, call your credit card issuer immediately and clear up your concerns. If by any chance, you wont be able to submit your payment on time, call your bank right away to explain your situation and ask for an adjustment. Most creditors wont report your late payment if you can re-submit on the next 30 days.