Introduction
In this article I will be writing about the some of the techniques used for closing the credit card debts in the efficient way. In the recent days, the default rate for the credit cards debt is increasing and banks are in the huge loss. SBI Cards alone losing more than 50 crore per month on the credit cards debt. It is the reason why nowadays credit cards companies tighten their policies to issue a new card. It is always good to track of your usage on credit card and also please monitor the due date for your credit card. The interest rates levied on credit cards are very high. This article explains some of the ways to get rid of unsecured credit card debts. If you have any doubts please post it in the comments section. Please subscribe to our future articles here.
1. Don’t skip the Due Date
It is one of the reason why most people are suffering the over debt in the credit cards. All the credit card companies offer minimum payment option before due date. If you have money, please pay the entire amount and don’t only pay the minimum payment and skip the due date. You will end up paying highest interest rates which will be much lesser than personal loans. Calculated your total debt payoff amount every month.
2. Don’t shop for more money if you cannot pay within due date
It is one of the big mistakes often people make. Don’t shop for more amount if you cannot repay the money before due date. If you are thinking that, you will pay the due like putting EMI. All the credit card companies offering EMI for the due amount. Remember that purpose of credit card is to take the loans, it is for instant purchase and payback when you get salary. If you need money where you will pay after six months, please go for personal loans.
3. Too many credit cards too much dangerous
If you have the mind set of having the many credit cards is fancy, no one will help you when you have more debt. It is good always stick with single credit cards. When you have many credit cards, there is more chance that you will forget the due date of the each card.
4. Learn about the charges,fees,etc
Credit Cards have the lot of hidden charges which will increase your due amount. Talk to the company and learn about the charges and fees associated with your credit card. Analyse the each month bill to check if there is any unknown expenses add into the bill. It happens frequently when customer is not caring about the bill details.
5. Set the remainder for due date
I use this technique to avoid missing the due date. I use Google Calendar to send the SMS notification for the important due dates. You can set up your mobile number and receive the notification messages. I like this application because it is free and more user friendly. I would recommend to use Google Calendar for setting the remainder, not only for due date for any other events.
6. Create online account
It is one of the easiest way to monitor your credit card bill. Many of us have the online account, if you don’t have one, please create the account and monitor at your desk. You need not call every time the customer support.
7. Choose e-bill to save the environment
Don’t opt for the paper bill unless it is required for any other purpose. I would recommend this for every other account you have with the banks or mobile bills, etc. It will help to save the environment.
Summary
I hope this article would be very helpful and eye opener for those who are suffering from the credit card debts. Follow the tips I have provided in this article and run the happy life by avoiding too much debt. If you have any doubts Please post it in the comments section. Thank you for reading this article.
Assignment
I would like to give you a task after reading this article. I know I would have missed good points related to managing the credit card debt. If you feel that you are efficient user of credit cards, please post your ideas in the comments section. If the point is really good, I will keep updating this article with new points.
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July 19, 2011 at 10:25 pm
Few Effective use of Credit card in a simplier way :
Please use maximum of two credit cards for your use,one for personal & the other for offical,in case you are a working professional or otherwise also always make an habit of using two credit cards options :
The simple reason being -First card could be used for Personal swipings & the second card for offical.
Always swipe the amount in a single card for the amount which is handy & with in the budget to payback.
Always try to swipe the card after the billing cycle date for availing extra credit days,so that you can manage & plan the overbudgeted swiping in case you have your finances tight & make advance planning for clearing the payments with in due date.
Always make your payments two or three days in advance,to maintain a clean record’s with the banks.
This inturn helps you for your future credit analysis,as it enhances your financial stability & payback power.
Never leave or ignore any small payments due,cause even a outstanding of Rs.100/- if kept pending may turn to few thousands & make you listed in the defaulters list which will effect your credit rating in the CIBIL report,which forms the basis for your financial ratings in future for deciding your repayment capabilities.
So Live simple by applying commonsense for swiping & making your CREDIT CARD payments in time,thereby improving your personal & family life & keeps you afloat in erergizing your financial planning.