Four Things That Can Keep Your Credit Card Debt Under Control
Last Updated : March 17, 2017, 12:52 p.m.
Everyone gets excited with the credit card in hand as the cashless instrument allows users to do so many things from paying the utility bills to making payment for EMIs on loans and insurance premiums. The usage of credit card is given further impetus in the age of digitization where most of the things have gone online. Now customers make payment via credit card using mobile phones and laptops using Internet. Just as you think that credit card is a heaven, let me just give a reminder of the financial troubles that may ruin you if you do not keep its debt under control. If you want to prevent yourself from such consequences, please keep in mind to follow things that are discussed below.
Avoid making minimum payments alone
You may may get away with late fees if you make minimum payments on time, but it will not help you cut down the mounting debt on credit card. In fact it will further worsen the debt situation. If the interest rate on your credit card is high and you make just minimum payments, then the debt repayment process will take the backseat. This will result in more interest payments and in the process your pocket will get lighter. Make sure you pay as much as possible to lessen the debt. Further, you can cut down a bit on dining in hotels and restaurants to use the savings to make payments for the debt. Efforts must be on to quickly pay off the debt as it will lead to less interest outgo and ensure enhanced savings.
Resist the temptation to shop via credit card while paying off debt
You may feel the urge to spend through credit card after paying off the extra amount on the due date. But you are advised to take guard against such step as it will completely undo your hard work and make the debt to rise further.
Keep an eye on credit card statements to notice discrepancies
Never take your eyes off from the credit card statements as there can be ambiguities in interest, fees, penalty, etc. Checking the statements carefully will help you keep a tab on the illegitimate charges, which can be waived if you report the same to the credit card service department of the bank. You can refer to the website of banks to know the contact details of credit card desk to resolve the problem. Statements now-a-days are sent to e-mail ID, making it easier for you to read and identify the discrepancies, if any.
Make saving a habit
Credit card debt can mount over a period of time if you go haywire in your spending patterns, ignore saving and do not have any financial knowledge. Even if you manage to pay off the debts and but not able to keep your lavish spending in check, the debt will come to haunt you again and get worse with time. It’s a fact that old habits of spending lavishly are hard to overcome. But if you want to stay immune from the financial troubles in the future, you better start saving now and not leave it for later. Barring emergencies where you may have to shell out extra, make sure you maintain a strenuous saving routine throughout the time the debt is there.
