Stop Paying Credit Card Debt And Stop Worrying About It

Using a credit card when transacting is indeed very easy. Not to mention the tempting promo offers. Unknowingly, the credit card bill swelled. You are overwhelmed by paying for it. The salary is not enough to pay the already large debt. Now you are in debt. Bad credit, debt collectors continue to collect every day. However, stop paying credit card debt and stop worrying about it, there are many ways to solve the problem.

Misuse of credit cards can trigger debt accumulation. Those of you who are usually lulled by the ease and comfort of one of the banking facilities will feel the bitterness of paying debts that seem endless. Therefore, self-control and also the discipline of paying installments are the keys to being able to avoid debt holes that you create yourself.

Illustrative image (Picture: consumercreditcardrelief.com)

Credit cards can help you to manage cash flow. Because if there is a sudden need such as one of your relatives is sick or you need to pay your child's school bills while the cash you have is not enough, you can use a credit card to fulfill it.

How To Get Out Of Paying Credit Card Debt

How to get out of the trap so credit card debt can be paid off immediately? There are several ways you can do this:

1. Calculate Total Credit Card Debt

Because of this, you may forget the overall amount of credit card debt. Try to calculate the total debt. This step is very important to do, especially if you use more than one credit card.

Calculating it, not only the principal debt. But also interest and penalties imposed by the issuing bank if any. By knowing the total debt, you have an idea and the wiser you will allocate money to pay these debts.

2. Calculate Net Income Every Month

The next step, calculate the total income you receive each month. This net income, including salary from the office after-tax deduction, and various other contributions must be paid. If you receive overtime pay, include it in this calculation as well.

The steps above are done to calculate the level of your ability to pay debt. Also as a comparison between total income and debt.

3. Looking for Additional Income

If a debt is greater than income, you can take another step, namely looking for additional income.

After getting off work, take advantage of free time to get income from other sources, such as doing business.

Put this additional income in a separate account, so that it is not used to finance daily needs. Don't take it, and make it a priority to pay off credit card debt.

4. Sell Your Skills

Monthly salaries plus profits from other businesses or ventures are not enough to pay debt installments. Don't worry, while you have the skills and expertise, do it.

For example, you don't understand business but have singing, writing, teaching, photography, or other skills. Take advantage of these skills by becoming a freelancer.

For example, after work, you can write articles for the company's website, accept gig offers at cafes, and teach lessons on Saturdays or Sundays.

This skill can be money to pay credit card debt. Take this side job seriously. Don't be idle.

5. Pay the Largest Nominal Debt

If the debt has not been repaid, then there will be a late fee. Debt is accumulating and growing. So, once you make a list of credit card debt, make sure to pay off the debt with the largest nominal first.

When it is settled, the next stage is to pay and pay off the debt which is nominal small. So you can breathe with relief because you are free from the shackles of debt.

6. Continue with Interest-Free Debt

If the condition is urgent, and money is lacking to pay off debt, you can find another way. Namely by applying for a loan to family or close friends, because it is definitely without interest.

Do not occasionally borrow money from loan sharks even in emergencies. Because the flowers are very suffocating. You can owe it to family or close friends with an agreement to pay it off immediately.

Once the credit card debt is paid off from someone else's loan, you must fulfill your obligation to pay the debt. At least it is a bit light because the debt charged has no interest.

7. Sell Different Treasures

Not getting a loan from someone else, another way that can be taken is to sell your valuables.

Inventory any assets or possessions that you have that can be sold, such as jewelry, televisions, refrigerators, or other valuables.

Remember, your fresh funds can be from the sale of the property to pay off credit card debt. Not to be squandered shopping.

8. Stop Using Credit Cards

Already stuck in a pile of debt, don't use credit cards again for a while. Stop using all credit cards.

Never be tempted to use it in a situation where you are still in debt.

9. Ask for Relief from the Bank

If all the efforts you have made are not enough, then the last resort is to go to the issuing bank office. Ask for a waiver policy in payments in installments, as well as debt interest relief so that you can pay it off.

What Happens If You Don't Pay Credit Card Debt

Being a credit card debtor of a bank is difficult to please. It's nice when you want to shop, just use a card, without worrying about having money or not. But when spending credit cards excessively your financial capacity, comes the difficulty. This is because the money you use from the credit card is debt at the beginning, pay it behind.

Do you know the legal consequences of not paying a credit card?

1. Pay High Interest

Credit cards turn out to be one type of debt that has a fairly high interest, you will be charged interest from 2% to 2.25% per month.

This interest is not only charged if you do not pay the credit card only, but also when you only pay bills with the minimum payment amount, and when making full payments after the due date.

Therefore, always pay your bills in full and on time, not to be less so as not to be charged interest.

2. Pay Late Fees

In addition to credit card interest, you also need to be aware of this point, namely late fees.

Let's say when the bill comes you can't pay it on time for one reason or another, you finally decide to pay it a few days after it's overdue, or even just paid in the next month again.

Just imagine if this happens many times to your credit card bill, the number of fines you will receive will increase.

3. Bad Credit Card Score

You need to know, every bank must have a category for customers whose credit payments are smooth or bad. This is what we usually call a credit card score.

For those of you who are often late paying maybe you will get a bad score. But if you don't pay the bills at all, you will certainly be given the worst score.

If your credit card score is bad, as a result, you will find it difficult to get a loan in the future, especially for those related to bank loans or other credit institutions.

4. Get Ready for Terror

Don't think the bank will stand by when you intentionally or don't pay your credit card. Be prepared to hear the phone ring more often than before, the bank will not tire of calling you many times, whether to a personal, home, or work number.

If the phone does not work, then you will be sent a warning letter addressed to your home and work addresses.

Not only that, if the warning letter has not made you aware, then the debt collector is ready to be lowered to directly meet with you.

5. Your Name is Blacklisted by the Bank

Did you know that banks have a track record of payments you've made in the last 24 months?

Its function is to find out whether or not all payments you have ever made are smooth. These records are called Historical Individual Debtor Information.

When your name has been included in the banking blacklist, you will have difficulty applying for credit or getting a credit card limit increase.

Hopefully information about things related to credit cards, especially "stop paying credit card debt and stop worrying about it" is useful.

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