How To Pay Down Credit Cards with Bad Credit Options
How to pay down a credit card debt is a question on everyone’s mind.
Everyone is trying to sell us some form of credit from flashy cards with travel bonuses to low interest rate balance transfers. The real risk of more credit comes when the repayments are all to much when you might have a tough month or even worse when you lose your job or a your primary source of income. Why it becomes so tough for some people to pay down their debt is because, they don’t just have one card, with the hope to pay it later, they take two or even three cards and the minimum payment on these cards could be equivalent to your total income or salary in tough times.
Maybe Stop Consuming And Save Up??
Firstly, credit cards are not all evil, but the greed to consume more and the willingness of the banks and lending institutions is evil enough to make you lose your sanity of understanding the simple fact that purchases are better postponed and that your salary and income is better utilized to save up the money and to pay the full amount at the point of purchase. When driven by greed or the lust of possessing some object, which might not be vital (and rarely is), credit cards can become lethal weapons and the following tricks can be helpful to reduce your credit card loans.
Here are some top tips to pay down your Credit cards:
1. Consolidate all your cards with one major loan, especially a secured loan like a mortgage that would have lower interest payments. If you have late payments or arrears you will need to look at a non bank home loan. Check your credit file to make sure you do not have bad credit.
2. Completely close a credit account. If you leave a minor amount payable on the card, with time it can grow beyond proportions and also affect your credit history with the incurring interest.
3. Make repayments more than your minimum repayment. By simply paying out the minimum payment every month, you might never reduce the principal payable.
4. Learn to negotiate with your credit card organizations. With an increased card limit, you could close other cards and consolidate all your loans with one card only. This is also recommended by mortgage brokers with combining debt with your home loan even with bad credit options.
5. Check your current credit cards break fees, as other banks frequently have super specials to transfer you to their products and they will have great promotional rates to entice you.
Save up the money and purchase your item outright and be free of high interest rate debt.