Learn how to effectively use credit cards in a responsible and frugal manner with this PR collaboration post full of amazing tips!
Get your Credit Card Debt in Order
If you find yourself in debt, it can feel like a difficult situation to get out of – particularly if you have to contend with multiple repayments and additional charges from interest rates. Situations like this can feel pretty overwhelming, but it’s best not to panic as taking a step back and trying some of the following might make things a little more manageable and leave you in a position to use a credit card more comfortably in the future.
Be Honest about your Debts
It can seem scary finding out the true extent of your debts if you owe to various lenders, but avoiding the issue is only likely to make things worse. Go through your statements and bills to work out the overall total and start to formulate a sensible way of paying it back in a workable time frame.
Make a Balance Transfer
If you have a number of credit card debts it might be worth making a balance transfer. These can help you make repayments at a more manageable rate, without being hit with additional interest. There are various deals available with 0 percent interest rate offers for periods of between a month and 18 months, so compare credit cards before settling on one. Remember though, these cards typically have a high rate of interest after the 0 percent period, so be sure to plan accordingly.
Don’t Add to your Debts
While it can feel challenging to completely stop using credit cards, this might be the best course of action until you get your finances back in order. Instead, only use your debit card and try to formulate a budget for essentials – such as food, bills and household expenses – and stick to it.
Use any Savings to Cover Debts
If you’ve managed to put some money aside for a special occasion, then it can be a little frustrating to consider using this to cover your debts. However, in the long term, this is probably the best course of action as once you are back in the black you can begin to start putting money aside again.
Be Better Prepared in the Future
There’s no time like the present to start handling your finances more effectively. Once your debts are in order, why not try planning your budget to manage in-comings and outgoings and – hopefully – avoid further issues in the future?
IM a stickler for responsible credit card usage!!!
trisha
Great advice, Leah. I always make sure to pay off my credit card bills every month. Sometimes, I may be a few days late and then I call and beg them to remove the late fee penalty (which they usually do), but I never want to be in credit card debt. You end up paying a ton each month purely on interest. It can so easily get away from you if you’re not careful!