Did you know that 38% of all households in the country carry some form of credit card debt? And, the average amount hovers around the $16,000. One thing these stats show is that everyone succumbs to a piece of plastic. Whether you want to boost a credit rating or pay for a new car, debt is inevitable. What isn’t unavoidable, however, are the rates of interest. Micromanaging your finances is the key to keeping the repayments down as an element of organization is essential. Here are the tips that will help get your credit card debt in order.
Bag A Bargain
As with everything in life, it’s best to start at the beginning. So, before you apply for credit card, think the process through. Is this card the best piece of plastic for your needs? Or, are you being enticed by the glossy card and standard marketing tactics? To figure it out, an individual needs to decide what features suit their lifestyle. For example, a 0% promotion on card or online purchases is ideal for an internet shopper. As a rule, 0% interest for a period is an excellent feature for everyone.
Transfer The Balance
Another beneficial trait to watch out for is 0% on balance transfers. The reason this is important is that people run a deficit. Therefore, by the time the promotional period ends, the interest rate will increase. If the rate of interest is more expensive than with another company, it makes sense to switch. To stop this, rival firms charge a fee. However, if they choose to waive it, all bets are off. All you have to do then is use uswtich.com or moneysupermarket.com to locate an excellent deal. Once you inform both parties, the rate will reduce by a significant amount.
Consolidate Your Losses
If you’re someone who has let their debt escalate out of control, don’t fret. Yes, it is a potentially scary time, but get out clauses do exist. One of the best is consolidating your debts into one manageable payment. Consolidatingdebt.co can walk you through the process, but all you need to know are the pros and cons. For instance, a consolidation loan cuts the costs so that you pay less per month. It is true that the investment lasts longer, which makes it more expensive, yet you have to think about the present. You need a way to pay the money back now, and consolidating your debts is a straightforward and affordable option.
Watch For New Fees
Card companies are great at slipping in new fees under the noses of their customers. Of course, an extra amount only adds to the rate and makes your debt more expensive. As such, it is vital to check any correspondence for information or details. From physical mail to email, don’t let it go unnoticed. Also, don’t let an “insignificant” amount get in the way. $10 a month doesn’t seem like much, but according to creditcards.com it’s $120 a year.
The answer is you can go very low. All you have to do is keep the tricks above in mind.