Credit cards can make someone addicted and addicted because its use is very easy, that is, just one swipe, then the transaction is complete. The habit of swiping a credit card over time causes the bill to swell. When the bills are swollen, they just dizzy thinking about how to pay for everything at the end of the month.
If financial conditions are safe, of course, credit card bills can be paid off. However, what if the financial condition of dying will certainly cause stress. Don’t worry, here are a few ways you can do credit card users who are having difficulty paying credit card bills when financial conditions are dying, which has been reported by Good Credit from various sources
How to Pay Credit Card Bills When Financial Dying
Trim Monthly Needs
The easiest way is to cut monthly needs. For example, if you usually spend 3 liters of cooking oil in 1 month, then you can reduce it to 2 liters. The same thing applies to other needs. This pruning is not a sign that you are stingy, but only to reduce expenses per month so that the money can be diverted to pay credit card debt.
For clearer trimming of needs, try recording it in a special notebook. First of all, record all your needs for one month complete with quantity and price. After that, it’s deducted to find out your total new expenses. Hopefully, by trimming needs like this, credit card bills can be paid off slowly.
Increase the use of cash
If you have always relied on credit cards to transact, now rely on cash to pay for all expenses, including monthly expenses. Relax, you can still use a credit card. It’s just that the intensity of its use is not as frequent as before. For now, you can only use it to buy items that get a discount when paid using a credit card, the rest does not.
Reducing the use of credit cards slowly will reduce your level of dependence on this magic card. In addition, the level of consumer spending will also decrease because you are afraid of losing the money you have in your hands when shopping.
‘Minimum payment’ can be an alternative
Whatever your financial condition, keep trying to pay the minimum bill, the total of which is only 10% of the total bill. For example, a credit card bill of USD 10 million every month, you can pay the only USD 1 million for this month, and so on if your financial condition has not recovered.
However, minimum payments are not recommended for the long term. This can cause bills to accumulate because the loan principal, interest expense, and late fees will increase automatically every month.
Disburse savings or investments
Have savings or investment, right? Well, you can use the money you have been saving or invest to pay part of the bill. If your savings and investments are enough to pay all bills, what’s wrong if you use all of them so that your life can be free from the bondage of credit card debt.
To return savings and investments that have been used, you can start saving and investing again as usual. But this time using a more stringent and detailed financial plan. Thus, money can be replaced immediately. You also have savings to finance important things in the future.
Submit a loan to a third party
If you feel you can no longer afford to pay credit card bills, immediately seek reinforcements to third parties. The trick is to apply for a fast loan online or bank loans, friends, family, or anyone who can provide loans for a while. It’s quite risky indeed because the bills that need to be paid in the next month will increase, but this method is far better than the credit card bills are not paid at all.
If the situation is like this, you really have to save. If you do not want to change the old lifestyle, then there will be no hope to restore the financial condition. The opposite is true, your financial condition will be increasingly destroyed from day today.
Negotiate with the bank
The next way is to negotiate a credit card with the bank. You can apply to change the bill payment terms every month. For example, by reducing interest rates, extending the repayment period, or making other settlement agreements that can be accepted by the bank.
You can go to the bank office where you make a credit card, then ask for a special meeting. For negotiations to be accepted, try to include evidence that will convince the bank that you can pay the bills. It could be by showing a certificate of ownership of property or valuables that have a high sale value.
Submit credit card deductions
If the main cause of your lifestyle change and financial dilapidation is credit cards, don’t hesitate to cut your credit card immediately. Cutting credit cards here is not by cutting, but by stopping the use of credit cards for a while. Submit a credit card deduction to the bank and include the reason why you did it.
Even though the credit card has been deducted, you still have to pay the bill until it is paid off. This deduction is solely to avoid increasing debt as a result of using credit cards.
Don’t Make the Same Mistake
If implemented seriously and with full commitment, the above method can help you get out of the financial trap due to the use of credit cards. One thing you need to remember is don’t repeat the same mistake a second time so that your financial condition does not return to ruin and collapse.
Try to make new financial plans, which can make your finances healthy in the long run. If you still want a credit card, then you must commit to using it wisely and pay your bills on time.