Debt is certainly very unpleasant. When you have to pay for items that you have bought for a long time, there is certainly a sense of remorse. Whether a debt to a friend, debt to the family, or using a credit card will only make the pile of debt at the end of the month pile up. In addition, sometimes you forget your financial ability when using a credit card, so in the end you have difficulty paying your credit card bills. Uncle Tom will help you outline how to eliminate your credit card surcharge.
Avoid using credit cards
Have you ever felt excessive stress and shopping will be one of the things that comforts you? Stop the habit now. If you have no control over your expenses, avoid using credit cards as much as possible. Overcoming stress by shopping and creating new problems, namely debt does not solve the problem, but only adds to your stress when you have to pay credit card bills that accumulate.
Calculate Your Debt
If you are forced to owe, then calculate your debt properly. Record your income and expenses so you can find out how much you have to prepare at the end of the month. Never be afraid to balance your income and expenses, even if that means you have to reduce some things in your expenses.
Look for Lower Credit Card Interests
Before you submit a credit card request with the bank, ask for some information from the bank regarding the products they offer. Are there credit cards with lower interest rates? Or is there a credit card free of administration fees? These things can help you reduce your debt every month. If you are already registered with a bank and it turns out that your credit card interest is large enough, you can actually negotiate with the bank to reduce the interest. How to? Try talking to the bank and explain the situation you want to get out of debt, then give an understanding that you are serious and might move to another bank if this continues. Banks certainly will not take the risk of losing consumers like you, so maybe the bank is willing to help reduce your credit card interest.
Consolidate Your Debt
One other solution to reduce debt is to consolidate your debt. How do you mean it? With debt consolidation, you replace some of your debt with 1 new debt, where the company will calculate your debts to 1 debt. The company will pay the debts and generally the time the company gives you to pay off the debt is longer.
Selling Unused Items
The principle of a credit card is to buy something that is beyond your ability. If you feel your credit card debt is piling up, maybe this is the time for you to stop buying items that are beyond your ability and try to replenish your savings by selling the unused items that you have collected using your credit card.
Plan the Right Way to Pay
Here are two methods for paying credit card debt:
The Debt Snowball Method by Dave Ramsey. If you choose this method, then you will pay off the debt that is minimal first and allocate your money to pay at the time of the next payment. However, the disadvantage of this method is that you will spend more money to pay your loan interest.
Pay the Debt with the Highest Interest First . This method recommends that you pay the debt with the highest interest first, and so on until only the smallest interest debt is left. This method will be difficult at the beginning, but will make it easier for you to pay off the next debts that are getting smaller and smaller.
Continue Paying Off Your Credit Card Debt
The final step to reducing the credit card surcharge is to continue your efforts to pay off the debts. Credit card debt will not disappear overnight, but a long process that you must go through. However, if you try to gradually reduce your debt, in the future you will be free of debt.
Free Credit Card Additional Fee
Are you still confused about how to pay off all of your credit card debt? Don’t worry and try to practice the steps above. If you still find it difficult to escape debt, ask for help from a financial planner like Uncle Tom to help you plan your credit card debt repayments.