Become Debt Free – Effective Ways to Deal With Credit Card Debt

Written by admin on March 30th, 2011

Perhaps, you already know many things about credit cards and how to use these. But do you know that there’s an increasing number of individuals around the world who are worried about their debt obligations? It is convenient to use your credit cards for your purchases but what isn’t convenient about it is that it is sometimes hard to pay our bills especially when these accumulate over time. The most common question that we ask is how to become debt free from it.

There are many ways to deal with credit card debt. But we should be cautious in choosing the right strategies to pay our debt obligations as not all of these strategies are effective when used. The primary thing that we should control, if we truly want to become debt free from financial obligations, is our spending habits. Our money to finance our purchases are only unlimited up to actual balance in our bank accounts.

Of course, we should recognize the fact that using credit cards is important in our commercial and business dealings with other people and individuals. But controlling our spending habits is the key to reaping the maximum benefits of using a credit card.

So how do we control our spending habits? Here’s how:

A. Terminate the use of your credit cards when you are sure that you don’t really need these. Contact your card company or your creditor bank to cancel your account under them. Keeping these activated for an unknown period of time, even if you do not really need them, will still incur cost annually for the account balance maintaining service. Who knows you’ll be tempted again to make an impulsive purchase of a product you don’t really need. Following this step is one building block to become debt free in the future.

B. Analyze the mechanics of a promo before you take the offer. If the bank offers the lowest interest rates, I’m sure that there’s a catch to it. It might happen that these low interest rates will only be in effect for a few months. You’ll be caught unaware of the interest rate hikes if you don’t take the time to be informed of your financial account balances in the bank.

C. Never bite a promo or offer which incentivizes free flights anywhere around the globe if it entails you to use your credit card irresponsibly just to achieve the number of points to avail of the free flights promo. Remember that credit cards are supposedly used for important and emergency purposes. Practice frugality at all times.

D. Do not fall for too-good-to-be-true payment grace periods. Some banks continue to charge interests to the overdue bills even if you’ve availed of the grace period; especially, when they promise you that your debt will never be charged with interest as long as you pay the whole amount of your bills at a specified day. Maybe your money is not enough by then to pay your debt in full. Always follow the rule that when you get your salary or money from alternative sources, always set aside first some amount to pay your bills.

To become debt free from financial obligations, one needs to find the most effective ways to deal with this kind of debt and apply what you’ve learned religiously in reducing your debt obligations.


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