by Ladies Finance Club
According to a survey by the financecorp, per cardholder, the average credit card debt is $4,200. The half a million of people have more than $5.000 debt. As per the report of Investments Commission, one in six people is struggling to pay off their share of the cumulative $45 billion owing in credit card debt.
What do you think about it? What is the reason behind this? The reasons can be many. But you have to find out how to become debt-free. How women can get out of debt? Here you go.
How will you handle your credit card debt?
Managing debt along with other expenses can be difficult for women, especially those who’re working to manage their personal and professional lives. The situation gets worse when you find yourself submerged in a sea of debt. Remember, there is no shortcut to financial security. You can have to work hard to get a stable debt-free life. You need to start from scratch if you want to manage your credit card debt. Find out some tips to manage your credit card debt:
1. Make wise use of the pen and paper
Before you get mad totally while thinking of your credit card debt, just STOP! Do you have a pen and a paper? Then, you should make the most of them. This will help you to fix the matter more efficiently. Make a list of each of your credit card balances with:
- the current interest rate
- minimum payment amount
- monthly payment deadline
- name of the creditors
- types of credit
- total outstanding balances in each credit account
2. Stop buying the crap
If you want to stop accumulating debt and start crawling out of debt, you must stop living above your means. Forget purchasing all those things that you can do without as these can be done later when you’re again well-off. Save for things and open a savings account so that you can let your money grow with time. This will help you to save more money for your future as well.
3. Repay debt faster
You must also stop carrying a balance as this makes you indebted to the credit card companies as you start accumulating outrageously high-interest rates. Get help from professional debt consolidation companies so that you can bundle your payments and repay them without straining your wallet.
4. Consolidate your debt
If you are swamped with credit card debt and if you have other unsecured debts that you think is gradually becoming unmanageable, you can opt for consolidation. It reduces the pressure on you as you are required to make only one payment each month.
It lowers the interest rate on the debt, you will have to make a single and low payment each month in comparison to what you had to forward previously. You will have to deal with only one creditor or one lender and thus there will be only one repayment plan. If you opt for consolidation, it also helps you to gain control over your debts as you make timely payments. Thus, it also helps you to maintain a stress-free life. You are no more required to worry about making several payments each month, you are no longer required to remember the different interest rates and payment options of the different credit cards and loans.
5. Pay off smallest balances first
It is better to keep your credit card free from minor balances. Try to pay off the smallest balances first and pay the minimum balances on all your credit cards. Paying off high-interest credit cards may save you money.
6. Consider using a balance transfer credit card
Are you are carrying a balance on your credit card? Yes? Then you should consider transferring the balance to a 0% credit card. Search online to get the 0% annual percentage rate (APR) credit cards with no annual fees and transfer fees. If you want to get out of debt, then you must avoid those cards that charge you a transfer fee.
7. Construct a firm emergency fund
One of the reasons behind falling into credit card debt is the lack of savings. So, make it a point to save more money for your rainy days. Also, don’t take out money from your retirement account in case of emergencies. You can set up an automatic monthly money transfer to your savings account.
8. Pay bills on time
Even if you are late on your bill payments by a few days your credit score will get hurt. So, you should make on-time bill payments to improve your credit score.
9. Shop around before getting a credit card
Though experts say that it is always better to stay away from credit cards as they are the root cause of all financial problems, if you still need an urgent one, make sure you shop around for a card and choose the best one that suits your budget.
Lastly, this is unfortunate the women are paid much less than men in our country. But that doesn’t mean women can’t come out of the financial crisis. Well, it’s not in your hand to equalize the wage gap. But, it’s in your hand to manage your own credit card debt and negotiate for a better salary. Follow the points mentioned above so that you may focus on getting out of debt and thereby gain financial stability as well.
