Getting Out Of Credit Card Debt

Reducing expenses and saving more is a financial goal that many people do. That's good, but paying off debt is the key to real financial success. But in fact, there are still many people who continue to take a lot of loans, even trapped in debt which makes them try to getting out of credit card debt. For example, about 35% of credit cardholders in America in 2020 had more debt than the previous year, according to a survey from CompareCards.

Picture: incharge.org

Credit cards that are used wisely can support financial needs. But if you use a credit card without proper calculations, it will leave you in debt. Especially if you have more than 1 credit card and that can eventually cause mounting debt.

Best Way Get Out Of Credit Card Debt

Incorrect use of credit cards can trigger a buildup of debt. Those of you who are usually lulled into the convenience and comfort of one of the banking facilities will feel the bitterness of paying debts that seem endless. Therefore, self-control and also the discipline of paying installments are the keys to being able to avoid the debt hole that you created yourself.

Credit cards can help you to manage your cash flow. Because if there is a sudden need such as one of the relatives is sick or you need to pay your child's school bills while the cash you have is not enough, you can use a credit card to fulfill it.

But like the situation above, many people are trapped in consumptive debt. Feeling that they have a magic card that can fulfill all their wishes, without realizing it, they buy a lot of things that are not needed.

There are three ways to get out of credit card debt:

1. Debt inventory.
2. Freeze credit cards.
3. Turn it into installments.

Also read: How To Consolidate Debt.

1. Debt inventory.

Not only items that can be inventoried, but if you have a large amount of credit card debt, you can start recording it first. Sort by largest to smallest nominal by interest rate.

You can start paying the interest first so that later you will see the principal amount of debt that must be paid. In addition, you can also inventory the amount of credit card debt from the smallest nominal first.

If this method is what you choose, you can pay off the debt with the smallest nominal first along with the interest. That way, the hope is that the motivation to pay credit card debt becomes even higher.

Indeed, when it comes to managing debt and money, the key is only a matter of self-control and also the discipline of paying bills. Do not hesitate to pay off the debt, do not be affectionate. Because it is an obligation that should have been issued.

That way, you also become aware that the actions you are doing are wrong and can be a lesson to be able to use your credit card correctly.

2. Freeze credit cards.

When you start paying credit card bills in installments, freeze your credit card. Freeze here means it's not closed, you can hide it first or remove it temporarily in a place that you rarely open. That way you can avoid adding credit card debt. Instill in yourself not to use a credit card until all the debts are repaid.

If you still use it, it's a lie. Your credit card debt won't go away. Bills are piling up even more.

So to avoid the occurrence of financial mismanagement is to make no mistakes. Don't add to your problems by continuing to cultivate debt, decide and solve them so that you can achieve financial independence immediately.

If you continue to dwell on debt, how can you increase financial assets? Remember, don't use a credit card when you're trying to pay off the bill. After everything is done, then you can reuse it more wisely, of course.

3. Turn it into installments.

You can contact the credit card issuer to restructure your debt. You may also be able to convert transactions into installments. If all total debt can be converted into installments, your finances will be lighter of course. Seeing the huge total debt does make the heart nervous. So one way is to ask the issuing bank for waivers to be able to pay in installments every month.

Remember, a credit card is a debit card. When you use it, you must first calculate how much you have been able to pay so far. It is necessary to be able to avoid the occurrence of difficulties in paying and accumulating debt.

In addition, you can also apply for credit card interest rate waivers. Asking for a submission to get a 0% installment if possible can be tried.

In some cases can finally get interest rate relief. So there is nothing wrong with trying to apply for credit card interest waivers.

Hopefully, this information about "getting out of credit card debt" is useful and becomes a reference for those of you who want to get out of credit card debt.

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