Here and there, everywhere you hear people talking about their credit card dues. Worsening the concern, the pending instalments come into the picture claiming their big share from the monthly budgets. Oops! Are you also among the ones with hefty credit card debts? Oh, then the subject of ‘credit card’ is quite close to you too.
Due to situation or due to careless attitude, whatever pushed you in mess, the ultimate solution is in the discipline. Most of the people lose the balance of financial life due to an ungovernable use of credit cards. Result is….. oh, you know that, there is no need to mention again and again.
The actual need is to work on the precaution facets that are unavoidably necessary to bring in implementation.
1. Pay the bills in full every month
This is the RULE NO. 1. If you do not want to be in the stress of credit card debt then embrace self-discipline and pay the dues every month. The best way to do this is – use the limit that you can afford to pay back and actually pay it back in the same month.
This may sound challenging and in fact impossible but if things go wrong, who is going to pay for the situation? ONLY YOU. Why not accept the right way beforehand and avoid the nightmares later?
2. Don’t be late in payments
Paying the full amount is a different thing and doing that on the right time is a separate concern. Never miss the actual date of payment. The reason for this you know very well. The late fee of credit cards is as aggressive in acting monstrous as the interest rates of credit cards. Also, the rate adds on the due amount, which is an invitation to the bigger turmoil. Do not let it disturb your financial balance. Pay on time and make it a habit.
- The prime benefits of timely payments are……..
- It helps to keep the interest rates low.
- Improves your credit score.
A big part of your financial performance is based on your payment history. It is always a deal of benefit to be punctual in your credit card payments.
3. NEVER use credit cards to pay the loan instalments
You cannot be serious while saying something like – ‘I often use my credit card to pay the loan repayments’. No, this should never get into the practice. A rare and emergency situation is a different case but nothing like this should be done on the regular basis. Whether it is about the very short-term 12 Month loans from British Lenders in London, UK or a huge amount home loan, just avoid it.
Ok, your excuse for this is the insufficiency of the instalment money in the bank account for auto debit. But, it is better to keep adequate arrangements for that as paying through the card stimulates dues. If you fail to pay them on time, the obvious consequences of pending debts and high rates are sure to appear.
4. Keep a track through regular ‘log in’ to your account
Sometimes you keep acting careless because you don’t even realise on how many things you are spending. Log in to your account at least once per week to see where you have spent. This may help you realise the fields where you may have spent unnecessarily.
Also, it gives a flashback of the past financial behaviour inspiring a disciplined approach next time. There are smart tools in every credit card to track your spending habits, use them for your own well-being. Next time you can detect the money leaks beforehand and stay on the track without losing the path.
5. Use credit cards for big purchases only
Taking out your credit card for every small purchase is not a sound habit. Buying a television or a fridge is fine but if your card pays even for the water bottles, please stop it. The small purchases become bigger later. For small things, it is always advisable to use cash. In fact, the world is full of suggestions that tell to use cash as much as possible. If little purchases go unchecked or unnoticed, they may all pair with the high interest rates to make a big, worrying debt.
- Utilise as urgent support not the prime tool to tackle expenses
Credit cards should be in use but as an additional support only. Encapsulate most of the expenses in your monthly budget. Only for the last minute needs or big transactions, credit card should come in use. Mostly people miss to keep this habit as a rule of their financial life and then finally fall in the pathetic situations. From grocery to daily commute expenses, perhaps most of the expenses can be easily tackled without using credit card. At least, start it and take it to regular practice gradually.
The final thing is
Every financial product has a use and purpose of its existence. If you make it act what it is not destined for, you may end up making a big mistake. The tips above are not different from what you do every day. They just reflect your daily financial habits that are just required to be tailored a little to act harmless.
Description – Credit cards are for your financial well-being. Do not change their role from a friend to threat by making their careless use. Some tips can tell you the right way to use them without getting into chaotic credit card debt.