Wednesday, January 16, 2013

How to End Your Credit Card Problem (Regarding Debts)

I have watched an episode of the Tyra Banks show and was appalled to know that 2 out of 3 Americans (according to the survey they ran) have problems paying their credit card debt. That's quite surprising to me. Actually, the number is alarming!

Debts get piled up and some people are even becoming suicidal because they cannot just find the way to solve this problem. Income from their jobs is not enough for them to survive in life's challenging financial battles.

In this article, I'd like to share my suggestions on how to solve and end your credit card debt problem.

1. Transfer Strategy

This is what I call the "transfer strategy." You will still have your debts but probably you can have lower interest rates by transferring the credit balance from a higher interest-rate credit card to a lower interest-rate one.

Research on which banks offer promotions such as zero-percent transfer of balance. You cannot escape from the credit card problem or just throw away your credit card balance and give it to others. But claiming this chance will reduce the addition of the debt's amount monthly or annually.

2. Stop Credit Card Usage

You know that problem crops up when you use your credit card despite knowing that you can't pay this money anytime soon. So common sense advises to stop getting your credit card in your wallet or on your hands. To come out of the financial debt mess, don't borrow money anymore!

3. Keep Only One Credit Card

If you can't help but still use credit cards instead of cash, instead of owning two or more cards, keep one credit card only. Return all the rest of the credit cards to the bank to lose the temptation of using them and thinking you have another unused stash of credit limit for the month.

End Notes

Make a commitment and strong decision to follow these simple steps by heart. Don't allow credit cards to ruin your life and be pushed to the bottom by your debts. Becoming free of debts does not happen overtime. You have to work on getting there by practicing good personal financial management and having much strict discipline.