Resolving Credit Card Debt

In life , sometimes we make mistakes . One of them credit cards for rebuilding credit , a greater lifestyle pegs than the pole , which led to the Credit Card Debt arrears are becoming increasingly swollen moon tremendous interest suffocating . Not to mention , the invasion of debt collectors tireless charge . However , do not worry . There is a solution ,which is easy to be executed .

Although it has never been delinquent on purpose , I never had felt had delinquent credit card debt . Due to forget and then assignments abroad for several months , I missed a bill . As a result , the number of bills shot in a short time due to higher interest expense and plus fines are not cheap . Not to mention , for more than a month late , debt collectors began diligently visited . Obviously , not a pleasant experience .

From this brief experience , which is easy - hopefully only once in a lifetime , I could feel how unpleasant had credit card debt . Since then , I think , there is no elegant solution to resolve this problem .

The solution was in fact exist , and not that difficult or impossible done .
Steps to Resolving Credit Card Debt

Here he steps - steps .

First, it should be understood that the interest and penalties that credit card loans extraordinarily high compared to others , because it’s all Efforts should be made to immediately pay it off within the shortest possible time . The problem is , many forget or do not understand about this . When have money , only some of which are used to pay credit card debt , some are placed as an investment , or even worse for consumption . As a result , credit card debt continues to exist and we have to continue to pay high interest .

Credit card interest is currently about 3 percent a month . Tell the highest investment returns came from stock by about 25 percent a year . That means , delinquent credit card only took 8 to 9 months to erode investment returns . Useless , if the investment had gone to pay the debt ends . Hence , it is better first stop saving and consumption control , the money diverted to pay off credit card debt completely.

Second , stop using credit cards , if you can not afford it with the keel . Sia - worth trying to pay off old debts if new debt persists . That’s the same leaky bucket . Make no mistake , I met a lot of people are busy looking for a solution to the sovereign debt, but on the other hand still use a credit card without being able to pay off .

If you can not stop debt , meaning that there is a problem in the pattern of consumption . This is a problem that must be addressed . And typically , the root of the problem is not in finance but in life style , prestige and maturity . More need psychologists , compared to a financial expert , to find a way out of this problem .

Third , if the debt can not be repaid at once , a step that can be done is to reduce the burden of high interest credit card . The trick is to change the credit card arrears be still installments over a certain period . Mortgage interest is still much more murah.Saat no bank gives fixed rate mortgage of 0.99 per cent per month , is way below the credit card interest rate of 3 percent per month .

However , there may be asking , if converted into a fixed mortgage , so long repayment period , which is different from a credit card debt that can be repaid at any time . Do not worry . Currently , most of the fixed installment scheme can be repaid at any time , prior to the agreed time period . That is , if it arrived - arrived had the fortune or be a bonus , permanent mortgage debt could be settled . Prepayment penalty of 200 thousand dollars , which is still smaller than a credit card interest charges .

Fourth , the bill moved to another bank which offers a cheaper rate , or so-called balance transfer scheme . I never move the bill to issue a state-owned bank card because it gives banks the red plate 0 percent interest for three months . With cheaper interest payments become lighter and can be completed more quickly .

Balance transfer destination is actually a fast effort - carbide clicking publisher ‘s portfolio of credit card loans that seem to grow and perform well . So , there must be a bank that is offering it . Stay smart - smart we saw an opportunity when the bank is being offered .

Fifth , after all the effort you can not also reduce debt , this last solution is the least I recommend , which filed a debt restructuring . Restructuring generally made ​​by banks to provide a reduction of interest or principal pieces but on condition that the arrears should be paid off . This middle way : banks get the refund , rather than disappear altogether , while customers get discounts arrears . Restructuring given by the bank after evaluating conditions deemed worthy customers .

The thing to remember is when the customer participate in this program will be recorded forever in the system debtors of Bank  as the customer once the restructuring . Well , banks generally will not give credit to the customers who ‘ve restructured . So , before going on kata kata mutiara restructuring , think carefully - both future implications .