How to Eliminate Credit Card Surcharges?

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

Consolidate Your Debt

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

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

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

Plan the Right Way to Pay

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.

HOW TO START A GOOD CREDIT HISTORY?

Credit history is an issue that includes us all and is defined as “an instrument used by banks to assess the solvency and ability to pay of the loan applicant”. This registry discloses the management of financial commitments that you acquire throughout your life in commercial establishments such as mobile accounts, chain stores, among others.

This history is a cover letter that demonstrates the behavior of payments and indicates the probability of fulfillment of your payment in credits. The reports are made through risk centers, private entities that record the operations of natural and legal persons. Wise Credit, Bifin and Credit ++ are some of the most recognized in Colombia.

Therefore, starting a healthy life in your credit history is possible regardless of your age and income to obtain greater possibilities of accessing credit in the financial system in the future.

 

At what age is it ideal to start a credit history?

At what age is it ideal to start a credit history?

Starting on this record does not have a certain age, for example, Wise Credit figures indicate that one in four credits in Colombia was granted to millennials, born between 1981 and 2000. In turn, it reveals that young people between 18 and 21 years old They increased their participation increase from 0.9% to 5% in the 3 years studied.

So that current generations understand the dynamism and importance of creating credit history for the future, so this path can be started in multiple ways, one of them is through online loans.

For Wally Verdin, experts in online loans, young people aged 20-35 are the ones who benefit most from this method of financing, both in large cities and in small cities and rural areas.

The main attraction to start credit history in this mode is that it is known as a gateway to credit life in traditional banking, thanks to statistics showing that 7 months after using an online credit, people make a Request for another loan with a bank.

Another way to start credit history is with the payment of services such as mobile. In recognized brands of operators, it is possible to be a postpaid user just by acquiring the equipment in your brand.

 

7 tips to start your credit life.

7 tips to start your credit life.

Taking into account the importance of starting a credit history, Wally Verdin gives you some tips to keep a good record:

Request loan amounts according to your income

Request loan amounts according to your income

When you start a credit life, it is essential to know the amount of money to request and the term for payments. It is not advisable to pay low-range loans in periods exceeding six months to ensure financial health.

 

Do not pay debts with other credits

Do not pay debts with other credits

Paying debt on debt to cover other fees is a negative practice and is not recommended in the short term, since it generates an unnecessary repetitive cycle.

 

Logically measure your expenses

Logically measure your expenses

People who start a credit life through products such as credit cards, have a good score in their records when avoiding the use of their maximum debt capacity.

According to Katherine Hudds, the lower the use of that ability to pay, it will be much more beneficial because there is greater self-control of needs, as well as the courage to borrow a little.

 

Pay on time

Pay on time

Paying on time is essential for good financial performance, keep in mind the payment deadlines and the possibility of default. In case of delaying a payment more than 30 days, the report in the risk centers has a duration of sixty days in the database. Although it is a negative situation, it is possible to handle, as long as you do not make it a regular practice.

 

Take advantage of the promotions of your financial products

Take advantage of the promotions of your financial products

Usually credit cards handle promotions for various establishments and services. Making use of these benefits is profitable as soon as they differ from a short amount of payments and the need and viability of the product are sensibly evaluated.

 

Customize your financial products

Customize your financial products

In the case of starting the credit history with online credits, they can be adjusted to your needs and payment habits through friendly solutions. So presenting a long list of physical documents and having a co-debtor in your contacts are requirements of the past.

 

Start savings habits

Start savings habits

Schedule a savings due from the savings account on a monthly basis, have a piggy bank or send a portion of the income to a savings are an excellent alternative to acquire excellent financial health. When you make the decision to save it is important to determine times and a goal. In case of not having clear objectives, emergency savings can be the solution to financial headaches.