Feel like just dumping your credit cards? Here are some better ideas!
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June 10, 2019
Credit cards can seem like a God-sent during month ends and other financial crunches. However, use them too blatantly and overdue bills could soon give you sleepless nights. For some, the burden of credit card debt can become so great that cutting up their cards or throwing them in the trash might seem like tempting alternatives.
Well, there are several things one could do before taking this extreme step. This article will highlight some of these steps to help you tackle debt and ensure it does not keep piling up. Check it out!
1. Try the snowball approach.
If you have credit card debt, you probably have multiple payments due. An easy way to knock off this debt is to find the smallest balance, pay it off and then move on the next balance, pay it off and then the one after that, until you have no debt left to repay. This way, you start small but end-up going through all your debts over time.
2. The fireball approach.
Snowballing your repayments is a great way to slowly & steadily get rid of your debt. However,
it might not be the cheapest & quickest way to get out of debt. If you want to shake off your
credit card bills quickly & in the cheapest way possible, you can use the fireball approach.
For this, you will first have to identify the debt that has the highest interest rate and pay it off.
After you’ve done that, start paying the second highest interest rate. Take it one bill at a time
until you’ve worked your way out of debt!
3. Learn to live without it.
Both the snowball & fireball approaches work better if you manage to stop using your credit cards or at least cut back on the amount you use them. This doesn’t mean you cut them up, rather it means trying to distance yourself from and learn to live without them. You can begin by unlinking them from your phone as a payment method. Next, whenever you go out, leave the card at home. This way, even if you’re tempted to buy something, you won’t have the card to make the purchase.
4. Depend on cash or your debit card.
We know the whole country is going cashless but if you want to stop using your credit card, using cash is a great alternative. Make a budget and withdraw it on a weekly basis. Many studies have shown that people are less likely to spend cash. This works on debit cards as well and as the money is going straight out of your account, you’ll think twice before you swipe.
5. Refinance.
If you want to get rid of your debt instantly and restore sanity to your life, you can take one
single personal loan and use it to repay your credit card debt. Chances are, the interest rate will
work out much cheaper than paying multiple rates on multiple debts.
Taking the scissors to your credit card is an extreme step. It will ensure you no longer use your
card, but it does not help you repay the debt itself. Moreover, if you suddenly find yourself in
need of money, you can no longer rely on your credit cards because they are all cut up or in the
trash. So use these tips instead and make light work of your credit card debt.
We hope this article gave you an insight on what kind of charges are usually hidden from you. If you need some funds for your next international trip, we at InCred can help you out with a travel or a personal loan. Visit our website to know more. Good luck and travel safe!
