Reducing Your Credit Card Debt

Worrying about exceeding your credit limit again? Are your credit card dues making you constantly anxious? If this has become all too familiar to you, you need to step back a bit, re-evaluate your credit card usage, and make some steps to reduce your debts.\


The Simple Rule of Credit Card Payment

Basically, to pay your credit card debt, you just need to put more actual money in your credit line and spend less on credit – that’s it! But to follow that general rule, you need to make smaller changes such as minimizing paying using your card and to reduce your overall purchases. It could also help a lot of you review your spending to get a clearer picture of where your money goes, and therefore where you can cut back.

“Rigging” the Scheme so that You Pay Less

If your credit card debt has become so big that it would take you months and months to catch up, you need to take a different strategy. The best solution is to pay your credit card debt by applying for a personal loan, which generally has a much lower interest charge. If you have other debts, you could also try debt consolidation services or consult credit management agencies for professional advice.


Spending Wisely Once You’re Debt Free

To avoid another case of credit card debt you need to continue the practices that helped you overcome them. At the same time, you should use your card more wisely by using it only where it has added benefits, such as if it gives you points that you can use to pay for other things, or if it gives you a discount on certain products and services.

Should You Just Use a Debit Card?

A lot of people say it’s better to just use a debit card because it avoid the risk of you spending money that you haven’t really earned yet. In a way, that is true. But Finance Made Simple, a financial consultancy firm in Singapore, says at the end of the day – if you only spend wisely – there are many advantages to using a credit card that you just can’t have with a debit card. So keep your credit card, and just spend more wisely.