Credit cards, issued by most banks, simply allow you to borrow a certain amount of money, spend then pay later. The cost of borrowing works in two ways; it can attract some fees in form of interest or it can earn you rewards and enable you build your credit rating. You can make any kind of purchase using a credit card, but only ensure to pay-up the debt within the grace period of between 25-30 days. Failure to which, you’ll be forced to pay interest on top of what you owe. Perhaps you’ve reached a point where making your credit card monthly repayments is such a hustle. This is a sign you’re in real debt and you urgently need a way out. Thus, there are few way to help you manage your credit card debt.
How to manage your credit card debt
Tips on managing your credit card debt
Create a payment plan
The amount you owe, whether for 5, 6 months or a year will determine the financial steps you’re going to take. For instance if your debt stands at $15,000 and you’re being charged 24% interest, you may plan to pay it off in 6 months. That means you’ll need to pay $3,000 per month. Better yet you can decide to pay-up in one year meaning you will pay $1,500 in 12 months.
Adjust on your lifestyle
After you’ve figured out when you’re planning to be debt-free, it will be easier to do some cut offs on your spending for at least that payment period. However this does not mean you deprive yourself or family of the financial comfort thus putting them in danger. For example if you’re used to taking them for dinner-out every weekend, you can adjust that to once or twice a month until you’re debt-free.
Supplement to your income
After doing your calculations of how much you need every month and made your lifestyle scale backs, you realize what you need per month as payment is still not enough. The next step is coming up with ideas on how to increase you income until you finally settle the debt. For instance if your regular income is from a 9-5 job, there’re plenty of side-jobs in Singapore that you can do either in the early morning, late in the evening or weekends. They include freelance tasks, waiting tables or hosting events.
Become credit card smart
After successfully clearing the outstanding debt and still feel like you want to retain it, though you can as well cancel it, do the following.
- Always pay credit card dues in full and on time to avoid late interest.
- Reduce your wallet size by minimizing the number or cards you hold to enable you keep up with monthly repayments.
- In your spending, never exceed your credit limit.
- Spend on budgets and stick to them so as to track and control your spending.
- Quit taking soft loans or spending cash in advance.
- Make use of the online financial management tools to help you track your daily card spending, the outstanding debt and the monthly payment due dates.
Licensed Moneylender nearby Town– Singa Credit Pte Ltd
Established in 1992 and previously known as Yong Seng Credit,
Singa Credit Pte Ltd is Licensed Moneylender in Singapore regularly updated with the latest regulations to be in line with the requirements set out by Registry of Moneylenders.
Please feel free to call 66946166 for more info on our lowest interest rate in Singapore or walk in our office 470 North Bridge Road #02-01 Bugis Cube Singapore 188735.