October 3, 2014
Once Malaysians turn 18, they become prime targets for lending companies and credit card providers. The opportunity for bargains, discounts, rewards, and other attractive promotions can be very irresistible, and not everyone knows the dangers of spending too much on your credit card.
Credit cards might be a great way to build a good credit score, but the misuse of credit cards can lead to debt. Not being able to pay the minimum balance on your credit cards each month can accumulate your credit card dues and hamper your spending power.
If paying off your credit card balance starts to feel like a struggle, here are five steps you can take before you’re buried too far in credit card debt:
Paying more than the minimum fee can help lessen the total costs you would be repaying against your credit card debt. It also lessens the years you have to repay your credit card debt and actually saves you more money in the long run.
Paying your dues on time does not just help you work towards eliminating your credit card debt, but it also shows your creditors that you’re working to be a more responsible cardholder. The more you pay on time (with more than the minimum monthly fee), the better your credit score can be!
Know where your money is going! Keep track of the money you spend, and the money you receive. Create a spreadsheet for all your expenses and savings, so you know which items you need to cut down on. Allocate more of your monthly budget toward repaying your credit card balance until you’ve repaid your balance in full.
Now that you have a system to track your expenses, plan your expenditures properly. Budgeting and tracking your expenses can help you become more disciplined with your money. Budgeting can also help you plan for your spending and it can also help you to figure out when you can spend on something big, like a vacation, or a new electronic gadget.
Consider getting a balance transfer credit card, or a debt consolidation loan, with a lower APR. This can help you pay off your credit card debt with lower interest rates. This would mean fewer expenses for you, and keep you from being overwhelmed by the accumulating debt. Find out more information on how balance transfer can help you with your credit card debt here.
Sometimes, we accumulate more credit card debt than we can handle. It can be rather stressful, and your credit score can also get hit if you fail to settle your balances on time. Take these steps toward a worry-free and debt-free life.
Learn about more ways to settle your credit card debt once and for all here.