Credit card debt problems are very easy to get into. Even with new laws and regulations, it seems like credit companies are still very willing to give you a virtually unlimited supply of cards, which translates into a virtually unlimited supply of credit. Or call it by its real name: debt. So how can you manage the stress of too much credit card debt?
It is very easy to fall into having too much credit card debt. You can charge almost anything, but you pay it back with a small payment whenever the bill arrives. And for most people, the minimum payment on any 1 credit card bill is very little. So the problem for most people is that they don’t realize how much trouble they are getting in, and how quickly. It’s like gaining weight: a lot easier to put on than to take off.
Here are 3 suggestions for dealing with credit card debt, from a creative problem solving perspective:
1. Stop using cards as 소액결제현금화 cash. Most people don’t carry cash in their wallets these days. If they, it’s probably not enough to cover most purchases. So people carry cards and use them like cash, to make purchases. This works if and only if you pay that credit charge at the end of the month when the bill arrives. The way to make this work is to have a separate checking account that will be the cash you are using the credit card for. Every time you make a purchase with a credit card, transfer money from your savings or checking account into this account. Then, when the credit card bill arrives, you will have the cash to pay it off.
2. Don’t pay credit with a loan. Many people fall into the trap of “paying off” one credit card with the new “zero balance transfer” of a new card. Or by refinancing the house or tapping a Home Equity Line Of Credit and “paying off” this particular debt. However, this is not paying off the credit card – it is merely transferring the debt to another creditor or your house. Hopefully, you will have a lower interest rate, but that’s not the point. A new debt does not “pay off” the old debt. It simply means you are sending your payments to someone new.
3. Prioritize your spending. Adjust your budget so your credit cards are paid off first. Now, there are a lot of considerations that go into managing your budget, so don’t this as your only source of financial advice. However, if you want to get out from this debt, you must make it a priority. That means making adding to your credit card payment (so it gets paid faster) rather than going out to dinner. It means not buying that thing you just have to have, at least until you have the cash to pay for it. It means that you and your family have a hard talk about setting other things aside, like vacations or new cars if the old one still runs, until the credit card debt is paid for.
You can search online to see how long it will take you to pay off your credit card debt if you pay only the minimum payment. You may even be able to call the card company and have them tell you. It is shocking. If you really want a heart attack, figure out how much you will pay back, with the interest. And the worst part is that virtually none of this debt is for something that will return either a profit or a substantial part of the original debt. For example, if you put your car on a card, then at least you can sell the car at the end and recover some money. But things like dinner, coffee, and clothes are not investments. They are merely purchases. And every purchase requires cash. It’s just that credit card purchases require the cash much later, and much more.
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