6 ways to keep yourself away from credit card troubles

Credit cards — those slim plastic cards that makes you feel more able to afford anything and everything in just a single swipe.

Want to have a dinner in a fine dine restaurant? Swipe. Can’t get your eyes off of that top-branded bag? Swipe. Been wanting to buy those top-tier sneakers named after famous NBA legends? Swipe. A brand new smartphone to match your brand new watch? Swipe. Anything else you want? Swipe.

Most people see credit cards as a means to unlimited source of cash. Since you can get ahold of whatever you please and it is just a swipe away, you tend to overspend and buy more than you need — mostly luxuries. Cardholders need to learn that having a credit card does not mean you are free to live beyond your means.

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With all these purchases, you are now drowning and living in an endless cycle of credit card debt. You could have prevented this if you managed your budget and have self-discipline. Don’t lose hope just yet, there’s a way out of this and we will help you, the right way.

Review your bank statements. If you’ll keep on neglect it and ignore even scanning through your statements out of fear, you won’t go anywhere near settling your debt. Chances are, you may only make things worse if you fail to deal with it immediately.

Asses it careful to ensure there had been no discrepancies. Review where you overspent and confront your situation. Oncey ou have gathered all the information, think about your options and ways to solve this problem and please, don’t create another one.

Keep them out of reach. Put them on ice and leave it at home where it’s less likely you’ll be tempted use them. You may feel different not having a credit card to pay for your lunch or impulsive buys but it’s worth keeping your money safe, rest assured.

Freezing your credit cards will prevent you from acquiring more debt and will help you deal with the trouble that’s already laid in the table. Paying again with cash will make you take a second check at the hefty menu prices and items you’re looking forward to buy. Now, you’ll be more aware and conscious of your ‘wants vs. needs’.

Manage your expenses. What more you can do to trim your expenses and become a wiser spender than monitoring your budget?

One of the reasons why you’re in the debt trap in the first place is due to your failure in terms of managing your money and prioritizing your bills and other expenditures. If you have more than one credit card debt to pay off, the more necessary it is to prioritize which should you settle first. If you aim to pay off one card after the other, start with the smallest pending balance you can clear up. Other factors should be considered suchlike if your aim to pay off with the lowest interest, you might want to start with the highest interest rates.

Free up some cash. A few dollars trimmed in your expenses daily, when collected in total, is a huge help to have additional extra cash and more importantly, speed up and get out of debt fast.

Since you no longer use your credit card, if you have extra cash you can allot for debt repayments instead of splurging on a night out drinking with friends, think twice and do what will free you pockets from debt faster.

Pay more than the required minimum. Why? The minimum payment is actually covering more of the interest rate rather than the principal balance. So it will only cost you more in the long run and will take you longer to clear your balance.

To keep it simple, set your own minimum payment more than the credit card’s. Furthermore, pay regularly every month to speed up your debt repayment.

Renegotiate with your creditors. If you have ran out of alternatives — you’ve seek help with your family, friends, relatives and it’s still not enough and won’t get you saved from this nightmare, don’t hesitate to go speak with your creditors.

Let your financial situation be known to them and if they grasp where you’re coming from, they can reduce the fees and you both can negotiate favorable terms. In addition, if you have any more concerns and questions with regards to your debt crisis, open it to them and ask if they can help you with it. You may be surprised with their answers.

About Chie Suarez

Chie Suarez has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for Speedy Money which offers hassle-free payday loans services.

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