Credit Card Debt Management «

    Credit Card Debt Management

    Managing credit card debt is not as difficult as it appears to be. With some prudent financial management, you can easily manage your credit card debt without falling into a debt trap. Credit card debt management Use credit card only when necessary It is advisable to use credit card only when there is no other available options for payment. Overspending could mount your credit card loans. Avoid using credit cards for making small purchases. Use it only for making bigger purchases, when you do not have enough cash or savings in your bank account to cover the entire cost. Pay more than the minimum monthly due You’ll be forced to stay in debt for a long period if you pay only the minimum payment amount each month. To reduce the debt burden, it is always advisable to pay more than the minimum due amount. Even if you can’t manage to pay the excess amount, don’t miss paying the minimum monthly payment. Your credit card debt burden will rise further, if you avoid paying your minimum monthly dues. Choose the right credit card Before selecting a credit card, check the interest rate that will apply to the credit. Also, keep track of changes in the interest rate that will apply to your outstanding credit. Read your monthly credit card statement to see changes in interest rate, if any, on your outstanding debt. Moreover, credit card debts often entail hidden fees. Hidden feeds include annual usage fee, late payment fees, tax on interest, fees for cash back withdrawal etc. Instead of using several credit cards, try to use not more than two credit cards. Try to use credit cards with lower credit limit. Your monthly budget A carefully designed monthly budget could help you to manage your credit card debt. Make a list of all the credit card payments you have to make that month. List your outstanding debts in a tabular format. Give equal important to all types of outstanding credits, big or small. If you pay only the bigger credits and ignore the smaller ones, within a short term your credit card debt will become unmanageable.

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