Learn How Debts Can Be Tackled

We are more than familiar with the fact that credit card companies are the host of a multi-billion dollar industry and their main customers include people like you and I, all sunk in huge debts.

They are expert in keeping people drowned in the ocean of debt. So how would you find out a way to stay out of debts? Here are some tips that can help you know how to decrease your existing debts:

Here we go!

Money plays a vital part in life and we cannot deny the fact that an individual’s happiness is greatly influenced by it. Only a few parents offer priority to teaching their children about money management. In addition, schools are following the same pattern of not including money management as one of the many important subjects taught to the children. 

This situation is fairly common in schools, but in colleges, it is far more worse. A myriad of us fall in the pit of extreme debts. We can’t seem to pull it together even if we make a hefty amount of money.

Let me explain what I actually mean by this.

I was dragged into the debt trap a few years ago. I was pursuing a good job, had a car, and a decent looking apartment. I thought that owning a house in the future will surely be a good idea and I’ll be living the “American Dream”.

It turns out I was so wrong!

I was never able to save money to buy my dream home. I carried a number of cards, and I always had to keep this large amount of money to one side in order to make payments. This snatched my chance of saving money for my house.

Among all the cards I had, I was always over extended for one particular card. “Buy now, pay later” bug was deeply rooted in my head. My wish was to overcome this frame of mind.

I always make my payments on time, thus, my creditors were willing to offer a helping hand to me. The only thing that I need to do make a formality call to the credit companies and request for either lower interest rates or the facility to skip a payment. After they approved my request, I had to get rid of the cards but I never canceled them.

While handling diverse credits, I used to keep my budget information as well as bills together. I used a software program on my laptop to help me keep the track of all my expenses. It is vital to keep it all documented so that to have an overall idea about your current financial standing.

I made this habit of writing down each and every detail of my card bills, including the name & phone number of the creditor, address, total balance I owe, charged interest rate, and the minimum payment due, the due date, and annual fees that come with the card (if any).

Review all the cards that carry the highest interest rates, and your objective towards these should be to pay more than just the minimum due. However, making full payment and that too in time will always be the best thing to follow if you want to make the best use of your credit cards.

When it comes to paying interests on the card balances, you can ask the credit company if they can help you by reducing the interest rate. In case you are unable to keep a tab on your finances, you can take the professional help of a debt management agency which can help discuss lower interest rates with your lenders/creditors.

Once you’ll learn how to manage your payments, you can begin using your cards again in a responsible manner. Keep in mind, minimizing your spending can prove to be the key to financial freedom. Start a savings plan the day you get your debt under control.