4 Ways to Pay Credit Cards That Are Proven Effective!

Credit cards are easy to use transaction tools. The main function of a credit card is to delay payment. Well, some people consciously or not delays this payment delay or just pay the bills with a minimum value, resulting in delinquency in credit card debt.

If you already have delinquent credit card debt, follow these 4 exact ways so that your credit card debt can be paid off:

First understand the credit rules and identify various costs related to credit cards

Why is this the first way? Because if you don’t understand various credit card fees, you might not be aware of what your payment obligations really are.

Do you know that a credit card has an annual fee that you have to pay even if you don’t use the credit card? Do you know that always paying bills with a minimum payment can cause your interest costs to swell as exemplified above?

Understanding credit card rules and fees can save you from being unaware of the accumulation of credit card debt in the future and helping to plan the repayment of credit card debt that is running.

Try checking your cash flow so far

The next thing you need to do is check the condition of your monthly expenses and income for a full year. What are your sources of income and are there improvements? Then, whether your expenses increase naturally or even lead to overdrawn.

You need to make sure that there are enough income and expenditure differences to ensure that you can pay off the credit card debt.

This method is also useful for finding what expenses can be saved to get more cash left over to pay off your debt.

Check the value of the assets you have

The next important thing you need to do is how much assets you have, such as deposit savings and other assets such as vehicles. Of course it would be better if you could pay off your credit card debt from the difference in your monthly in and out cash flow or sell the investment product that you have, but selling assets or using savings is another way that can be done if it is not enough.

Even if it turns out that it doesn’t need to be sold to pay off debt, knowing the value of the various assets you have can help you to make other financial plans such as meeting retirement targets or making education savings.

Prepare a debt repayment plan

After you know all your financial conditions, it’s time to make a plan to repay your credit card debt. Try to describe the value of the debt you have, the deadline, and determine how long it will take to pay off all your debt.

If needed, you can also try negotiating with the bank to ease the interest burden or even ask for a grace period (the period in which your debt is not subject to interest), provided you are able to pay off the debt in the agreed time.

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