Using credit cards is a convenient way for you to purchase the products or services you need. However, at the end of the month, you could be racking your brains to find ways to repay the accumulating debt you incur by overusing this plastic money. If this is the case, then you are not alone. Millions of people face the same problem.
Andrew Corbman, a reputed financial advisor from Ashburn and the President of ASC Financial, Inc., says it is possible for you to take charge if the situation to reduce such debts. To do this you need to keep in the mind the following financial tips:
Create a feasible budget for yourself
You need to sit down and prepare a budget where you note down your sources of income and the expenses you need to incur every month. Find out ways where you can curtail such costs as far as possible so that you can save some extra money. You can then use this cash to pay off your credit card dues promptly.
Use a spreadsheet to make a list of the various credit cards you own, their corresponding interest rates and the outstanding dues on each of them. This will enable you to know how much debt you owe. Your objective is the clear this debt as fast as possible. Unless you are aware of the quantum of this debt, you will not be in a position to deal with the problem.
Clear the debt on the highest interest card
Andrew Corbman explains that your first task is the clear the debt you incur on the card that charges the highest interest if you hold multiple credit cards. This is a convenient way to reduce the interest charges you accumulate every month. You can then use this policy the other credit cards you own. However, if you have only one credit card in your name, then try to make two minimum payments every month. This can give you a sense of achievement knowing that you have been able to clear a huge outstanding debt.
Avoid using your credit cards as far as possible
The simplest and most convenient way to eliminate your credit card debts is by not using such plastic money as far as possible. When you start using cash to purchase the products or services you need, you subconsciously start spending less. Research shows that people generally think twice when it comes to making payment with cash in comparison to their credit cards.
Consolidate your credit card debt
This could turn out to be a viable solution to your problem. It involves take a loan from the bank to pay off your outstanding credit card debt immediately and focusing your attention on repaying the monthly installments of this large debt.
Andrew Corbman says credit cards are no doubt a convenient way to make purchases especially when you do have the necessary cash with you at that time. However, you easily fall into the trap of accumulating huge debt with this plastic money. Fortunately, the above steps can help you to repay such debts promptly and efficient.