Having a credit card makes you feel confident in times of need because you know you could still purchase the necessary items. You can pay bills without worrying about the interest rates because you can pay in due time using a credit card. The problem is that since it is too easy to swipe the card when needed, you could end up with a number of debts if you do not manage your money. Before you know it, you are already unable to pay your loans. These tips will help you when facing such a difficult situation.
Take advantage of balance transfers
When you have a credit card with a high-interest rate, you can move it to another card with a lower rate. You can also find a 0% balance transfer credit card that makes sense. You still need to pay the previous debts but if you can’t, you need not worry because you are not going to spend on the same interest rates. You now have a more comfortable payment plan than the one you had before.
Freeze the card
The first thing to do when you already have huge credit card loans is to freeze the card. As it stands, you are already having a hard time paying the total amount. If the card remains valid, you will feel tempted to keep using it. You can ask the bank to cancel the card, or you can cut it yourself. The goal is to stop the temptation of using it. As long as the card remains in your bag, it is easy for you take it out any time you got short in cash instead of suspending any plans to purchase stuff.
Delete your credit card information in all online stores
It is also easy to feel tempted to use the card for online shopping. You choose the items you want to buy, place them on the card and head to the checkout counter. In one or two clicks, you already purchased the item. The reason why it is so easy to do so is that you already saved the information, however, if you delete the details and you need to go through the process of filling out your personal and credit card details for every transaction, you will get tired and eventually will decide not to continue to shop online anymore.
Create a payment plan
Instead of ignoring your debts, you can finally look at them and create a payment plan. You can decide to pay them based on the interest rates that you might accumulate if the debt remains unpaid and it also helps if you double up the payment each month, so that you can start covering the next bill which allows it to keep steamrolling. Before you know it, you already paid your dues.
Track all your expenses
Another reason why you ended up with piles of debts is that you failed to track your expenses. It is crucial that you write everything down. Even if you spent a small amount to take the train, it needs to be a part of your record. You will not feel surprised when you already have tons of debts when you knew where you spent them. You will also learn to stop when you went beyond the limits given how you use the credit card.
You are using a credit card because you are always short in cash. When it is time to buy something you need, you have no choice but to use the card. However, if you start saving money, you will not worry when the time comes. You know that you will have enough money to spend on anything you want. Credit cards also have interest rates while paying items in cash will not result to such unnecessary charges.
Do not feel the need to buy what your friends have
Another reason why you have a lot of debts now is that you keep tracking what your friends are spending their money on instead of focusing on what you need. As a result, you become jealous of what they have and force yourself to buy stuff you do not need. You cannot continue doing things this way or else you are wasting tons of money.
Change your habits
Even if you survive this current dilemma, you will still get back to your old ways if you do not change your habits. Make sure that after paying off the loans, you try to start over again. Rethink everything that you decide to purchase. If unnecessary, you need to suspend your plans. Subscriptions and other recurring fees that are unnecessary do not need to be there if you are smart enough to cancel them. Prioritize what you need and do not rely on your credit card at all times.