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by Zulika van Heerden
Credit cards have gone beyond being just
a common mode of payment and made it as
the norm in paying for most daily
expenses. You probably use it at the
supermarket, liquor store, bookstore,
petrol station and just about every
other establishment that sells life’s
necessities.
But when it comes to debt these kinds of
cards they are also one of the major
culprits in the growing debt crisis.
These cards have engendered the idea of
spending sprees in consumers, which
those same consumers must pay for later
on.
If you’ve already fallen into the cycle
of indebtedness, one of the best and
most concrete things you can do to get
yourself out of your self-dug pit is to
reduce your card debt.
Cut Down on Cards
While cutting up or closing down your
credit cards is a good idea, it’s not
recommended to shred all of your cards.
Even if they’re practically pretty debt
traps, you’ve got to admit that credit
cards are very useful and convenient in
a pinch. Keep one or two where you’ve
still got a bit of good standing and
then shred, close down or transfer the
rest.
Another good way to cut down on your
cards is to look for just one or two
cards that offer good terms such as 0%
interest for a certain period or reduced
interest and fees. They’re a bit
difficult to find but a call to your
credit company or a little comparison
shopping on the internet would be a big
help. See what you can do about getting
your account transferred to those cards
from your existing ones.
One of the biggest problems with credit
cards is the fact that they charge
sky-high interest rates once you begin
missing your payments. With rates as
high as 35% in some cases, it doesn’t
take long for your debts to accumulate.
Looking for a new card with better terms
or lower interest should help in
softening that blow.
Grab Some Greens
Many financial and debt experts say that
overspending on cards is also partly a
psychological problem. Credit cards
don’t tell you that you’ve exceeded your
budget, while at the same time
continuously providing instant
gratification and satisfaction. The
satisfaction only stops when the bills
come in the mail at the end of the
month.
Stash away your cards and start using
some of actual cash. It’ll help you
stick to a budget because it provides
you with visual cues (i.e. there’s fewer
and fewer of it) to tell you that you’re
running out of money. Plus, you really
can’t spend any more once you’ve
exceeded your budget. Maintain the
plastic for emergencies but keep them
well out of sight when you open your
wallet.
Credit cards aren’t necessarily bad by
themselves, and they can actually be
good for your credit rating if they’re
used responsibly and paid for promptly.
Cutting down on your card debts –
especially when you’ve got a big one to
begin with – might take some time. Give
it some responsible spending and a lot
of discipline, though, and you’ll notice
yourself gradually going into the black
For more on debt consolidation see
below :
-Credit
Card Debt Secrets
-Steps
to Eliminte Credit Card Debt
-Debt
Free Living
-Lowering
Your Debt For Life
-Are
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