Confessions of a Shopaholic: Getting Your Credit Card Debt Under Control

If you are in some credit card debt, then it is important to know that you’re not alone. Many people throughout the country are in some form of debt. From mortgages to paycheck loans, there are lots of forms of debt. There can be a way to manage debt, and get a strategy in place to help you to deal with it. If you don’t then it can quite easily get out of control. So if you are struggling with getting your credit card debt under control, here are some strategies to help you before it gets too much.

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Face Facts

It is important to not bury your head in the sand, so to speak, when it comes to debt. You need to own up to the debt that you have. If you carry on spending money that you can’t afford to pay back, then it will just get worse. You’ll have to pay more and more interest, and it can all just become too much. So face facts and count up how much debt that you have, as well as what money you have coming in each month. Check the rates of interest on the different cards that you have, on a site like comparethemarket.com. From there, you can prioritize, and make plans to clear your debt.

Look Into Consolidation

If you have debt, then it could mean paying less debt than if you look to consolidate your debt with a consolidation loan. You could look at a site like consolidate.loan, for example. If you have one loan, to pay off your existing debt, then it can mean that you only owe back that one loan. You should check the interest rates of everything. But if it works out that you’re paying less interest overall, then a consolidation loan could be for you.

Set a Budget

The next step is to work out how much you can afford to pay off each month. Drawing up a budget is the best way to tackle debt head-on. Look at the amount that you have to repay each month. Then look at your income each month. From there, you can set out how much you can pay off each month, as well as what you can afford on other things like your bills and groceries. From there, you can look what to cut down on, and cut out some unnecessary spending. It will help to clear your debt much faster.

Balance Transfers

For a time, you could look to get a balance transfer for your credit card. There are some credit cards out there that will offer zero percent interest if you choose a balance transfer. Meaning that you’ll have a set amount of time to make your repayments each month without having to pay any more interest. You need to be careful with these, though, as the interest rate can often hike up quite high once the zero percent interest rate time has run out. So check out the calculations of it all to see if it will make a difference to you.

With a few changes and some steps to make changes, you can take control of your debt much quicker.

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Plastic Fantastic! Using Your Credit Cards Wisely

Signing up for your own credit card is a huge step. It shows your engagement with the larger financial world. While some people may boast that they’ve never borrowed a penny from anyone else, they’ll soon stumble when it comes to taking out a large loan down the line, such as a mortgage, or a loan for a large expense such as a wedding, holiday or car. After all, if lenders haven’t seen how you deal with small amounts of cash, how can they know whether they can trust you with large amounts that are not your own? Engaging with credit is essential. However, you need to be able to use credit wisely, or you can quickly and easily land yourself in a whole lot of debt. Here are a few things to bear in mind when dealing with credit and professional lenders.

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Interest Rates

Every professional loan will have some kind of interest rate attached. Essentially, this is what the lender charges you to borrow money. The lower the percentage rate, the better the deal for you. So shop around before signing up to any given credit agreement. There may well be someone out there who’s willing to offer you a better option.

Repayment Installments

You will be expected to repay a certain amount on a monthly basis. This should be the largest amount that is affordable to you. This means that you will clear your debt as quickly as possible. However, don’t set your repayment rate at an amount that is too dear for you to realistically afford. Missed or late repayments not only affect your credit score but will also land you with fees and fines.

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Improving Your Credit

Keeping up to date with repayments will increase your credit rating. However, this isn’t the only way to boost your lending appeal. Whether you have negative credit that you want to improve or are simply looking for some tips and tricks to further boost your standing, take a look at creditrepair.co. This page will tell you all that there is to know about the Credit Repair Organisations Act, highlights common mistakes that you may be making, goodwill letters, charge-offs, and much more.

Creating a Budget

The main reason for people ending up in credit card debt is spending beyond their means. Remember that credit cards aren’t free money. If you are using your cards wisely, you need to make a budget. This means that when you borrow money, you are making an informed decision and are completely clear on how long it will take you to repay it and how much the loan will cost you overall. So sit down with a pen and a piece of paper and work things out properly before setting your mind on making any purchase, whether large or small.

So, there you have it. Credit cards truly can be the gateway to both financial triumph and financial disaster. You want to be in the first category, so lend responsibly and avoid living beyond your means. Stick to the terms and conditions of your contract and everything should be plain sailing!

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