How to manage your credit card debt

Tips to manage your credit card debt well

06:42 10 November 2014

If you want to clear your credit card debt, the first step is to break the custom of using the card on a regular basis. Conquer the temptation of using it wherever you can by leaving it at home. 

 

Again, you will be able to become debt free faster if you pay more than the minimum monthly debt. It will definitely take a long time to pay down the loan if you only make the minimum monthly repayments. Pay as much of the credit as you can every month to cut down the debt so you can become debt free in due course.

 

Talk to your credit card lender and ask them if they can cut down on the interest rate they impose on your credit card. The card provider could be compassionate enough to decrease your card’s interest rate. A reduction on the interest rate would translate to a reduction of the sum of monthly interest charged on your credit card. 

 

Similarly, you can also consider shifting to a low interest credit card or to one with zero interest on balance transfers. You will be able to pay down your debt faster if you succeed in transferring your balance to a zero interest credit card. 

 

If you think that the credit card is spurring you to extravagance and that your monthly balance is huge, think about the option to lower your monthly credit limit. Reduce your credit limit to a manageable level, one that you can pay with ease each month.

 

It is a good habit to avoid late credit card payments. Payments made after the date they are due will attract a penalty charge depending on the card issuer. Keep track of your spending via the online platform provided by the card issuer. 

 

Finally, deliberate on whether it would be more advantageous for you in the long run if you use a debit card instead of the credit card.