Thu. Jun 30th, 2022

When I was going through the situation with my credit cards, I got some credit card help from a credit card counseling company. By me following their directions, after a while, my amounts owed went lower till it reached zero. Here are some of the things that were told to me and will help you on your way to being debt free. Don’t miss any payments!💳 Credit Card Emoji on WhatsApp 2.16

Even if you have to pay a little less somewhere else, put an extra $5 or more and see the difference it makes on your balance.Credit card companies will slap on humongous penalty fees for late payments. (It happened to me and a $10 monthly fee would become $15 then $20.) As I got closer to the zero balance buy VCC with crypto, I would take a little from my 2nd paycheck which sped up my eliminating the debt.

As you consistently make your payments… you may be able to ask your credit card company to lower the interest rates on your card. I believe after 6 consecutive months of consistent payments, they may consider. (Any way that was what happened to me when I had my Discover card.)

Check with your credit card company for exact details because not every company does things the same. Limit yourself to no more than 3 cards. This limits the amount of total debt you could incur. It also limits potential issues from identity theft. It would be even better if you only had 1 or 2 cards. Which is good enough to help you establish or maintain a credit history.

This article discusses credit cards – understanding credit card debt, cash advances and balance transfers.

As amazing as it seems, most people do not understand credit card debt. They see a refrigerator and they think – oh, it’s only $10 a month for the refrigerator. We can afford that can’t we? They don’t think in terms of how much money is on their credit cards as a total amount. They just see it as another sum of money they will have to come up with each month, and while $10 a month more may sound reasonable and doable, that $10 a month, added to what they already owe, may tally into the thousands of dollars.

What they also may not understand, is that $10 a month is going towards a $700 refrigerator – by the time it’s paid off, they would have been able to buy 3 refrigerators for all the finance charges they had to pay over the years.

I know a woman who only bought merchandise that was on sale – whether she needed it or not – if it was on sale, she bought it. She had a closet full of clothing that she had bought over the years, most of which she had never worn, but they were all on sale so she bought them. And with each blouse or dress, she added to her collection in the closet, I kept hearing her tell me about the wonderful bargain she had got and how much money she had saved. These articles of clothing stayed in her closet unworn for years at a time- while she stuck to just a few outfits that felt comfortable on her. She was struggling to pay her bills – I said to her – stop shopping – and she said: that’s the only thing my husband and I enjoy doing together.

I told her that she and her husband needed to develop another hobby. They did. They started eating. Gargantuan amounts of food so she couldn’t even get into any of her bargain clothing. This went on for several years. When she lost her job and couldn’t find employment, I started to counsel her on her spending habits. I wanted to know what she needed at a bare minimum to survive. Part of me was afraid to ask her how much her credit card debt amounted to – but I did anyway. When she told me she had racked up $50000, it took everything in me not to let out a loud gasp in shock. I then proceeded to give her financial counselling for many years after that – and now I’m pleased to say that she’s free of credit card debt and she even has $4000 in her savings account.

Credit cards are very seductive. When they first came into existence, people used them for the purpose for which they were intended – as emergency funds. Your car breaks down, you have no cash, no savings, nothing that you could use to pay the towtruck to come and rescue you for the repairs that are needed at a service station, so you whipped out your trusty little credit card that was on hand just for an emergency, and you breathed a sigh of relief when they put on a new fan belt or a new radiator or a new tyre to replace the one that had just blown – and that’s what credit cards were supposed to be used for.

By admin

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