Reduce Credit Card Debt and Pay only in cash
If you pay your monthly dues within the specified time, using a credit card in day-to-day transactions is not necessarily a debt trap. However, this is not true; using multiple credit cards can often lead to overspending and more debt. According to several surveys and studies, we spend more using credit cards than using cash for payments. Credit cards are convenient for payment purposes, but we need to set a spending limit based on our budget to avoid unnecessary debts. If you cannot stick to a spending limit, you can always go for credit card debt settlement. If that is not what you want, then it indeed is the time for you to ditch that credit card.
Here is what you can do to reduce your credit card debt –
1- Envelope Accounting –
The ‘envelope accounting system’ can be a game-changer for credit card users. This may help you reduce debt settlement loans as well. The system requires you to assign an envelope to each item onto your family’s monthly budget or expenses. This way, money from this envelope would not be used on anything but the required thing or bill. This system eliminates the convenient monthly excuse and covers up your running up credit card debt.
2- Pay in Cash –
Credit card interests are costly and can often lead you to debt settlement which is a good option. Credit card interests run nearly twice or thrice the interest rate of home equity loans and mortgages. Hence, it is better to pay off things or items with cash rather than credit cards.
Credit card interests are not tax-deductible and are risky. And the abusive use of credit cards can lead to financial crunches leaving you with huge credit card debts. Thus, ditch paying in installments but pay in cash for the thing you wish to buy. If you cannot afford something, save up for some time and then believe that item you had your eyes on months back.
3- Prioritize your debts –
Organize the debts that need to be paid within the speculated time. Streamline your budget so that you can maximize cash flow. Pay your bills and necessary expenses with cash, if you pay them through a credit card that may lead to multiple risks as your credit score will be lowering eventually leading you to debt settlement for credit cards. The more cash flow you make, the faster will your credit card dues will go. Cutting off unnecessary expenses for a month is always better than paying high-interest debts.
4- Credit Card Debt Settlement –
Call up your creditors and ask them to lower your card’s interests. Negotiate with them to lower your card interests and in some time, you may see that your credit card score has improved. The best way to reduce debt settlement for credit cards and other mortgages is to pay in cash. However, you may also opt for this option if you possess a minor credit card debt.
Clearing your dues is always better than piling them up for months. Take up the best advice from debt settlement companies that allow you to organize your debts and help you reduce your credit card dues. Reduce the monthly offers and payments; instead, pay with cash for things and necessary expenses. Credit My Debt is one such company that will help you and guide you through your financial situations. They will provide you with the best credit card loan settlement and help you overcome the crisis.