Smart Ways To Cut Down Credit Card Debt
Getting stuck in a vicious debt cycle can be tough. Here are some smart ways to cut down credit card debts.
Credit card debt is one of the highest and most stressful burdens that someone carries on their shoulders. The average person has a credit card balance of $4154. Which is quite alarming especially when they carry more than one credit card with high balances.
Paying off your credit card bill(s) can be daunting and a terrifying endeavor. Nevertheless, it’s an important bill to maintain and pay on time, to ensure you do not suffer from the repercussions of not paying your credit card bills on time. When you don’t pay on time you are affecting your daily life. By doing this you will decrease and affect your credit score which can affect your life in many aspects.
Lowering your credit score can affect you when you attempt to apply for another credit card, a line of credit even a phone line. It will also affect you when you want to refinance a home and may need to apply for a mortgage.
Check your statement often and always pay your dues on time to cut down credit card debts
Checking your statements on the regular should help you avoid late payments. Your statement will show you the minimum you owe and what date it should be paid by. Keep in mind you shouldn’t just be paying your minimum balance; you should be aiming to pay a little more then needed. By paying just the minimum, you will end up paying more in finance charges than if you paid more on a monthly basis, as this will help pay off your amount owing sooner. You can save a great amount of money in interest if you raise your monthly payments.
With today’s technology and so much being available with just a swipe of a screen, you should not be late on your payments. However sometimes it is not the case and you may be in a financial rut and not able to make your payments on time. If this is your case you can always swipe BHM Financial’s screen and see if you qualify for a loan. Applying for a loan we can help you catch up on your payments to keep your credit score in good standings.
Our assessment is free of charge and we are here to help you.
Owning Multiple credit cards
Avoid applying to multiple credit cards, as tempting as they can be by the rewards they offer. It is not easy to maintain numerous credit cards. It is also very easy to spend outside of your means when you have multiple cards to swipe. Ownership of multiple credit cards can also affect your credit score.
Know your credit limits before making purchases to cut down credit card debts
There’s a wise saying that “one should always know the size of your mattress so that you can stretch that much peacefully”. One should avoid stretching themselves more than your mattress could hold. Following this old saying is a wise thing when it comes to spending your money. Making unnecessary, impulse purchases just add up to the credit card debt.
Always remember that it’s a safe bet not to exceed 30% of your available credit. If your credit limit is $10,000, do not exceed $3,000 in debts. Making some serious amendments to our credit card habits can go a long way for us in future.