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Friday, August 7, 2009

Credit card debt: obstacle for your peaceful finance life (part 2)

.....I am back again, to throw some more bright light on the necessary facts associated with Credit card debt releif issue.
On my last post regarding this topic (where I firstly came up with this issue & started discussion.....I guess,), I made you aware of the common financial mistakes and wrong, uncalculated financial steps responsible for the accumulation of credit card debt. I told what it takes to get unpaid heap on your cards, and why its a FATAL HABIT (as I described it) to use a lot of cards. But then, how to avoid card debt completely? How careful we need to be while taking any financial step, and what are the right financial steps we need to take to save ourself from card debt? How strict, choosy & picky we need to be about purchasing all the stuff via credit card? All these questions always keep haunting every simple, middle class working you all, I have also been looking for answers to them for a long time and came up with a few solutions & tips...which I trust, are useful for card holders to keep in mind.
Lets see, if my words help you:

1) 1st of all, stop unlimited, unmeasured & unleashed use of your cards. Keep in mind: your cards are to support you in case you find any tough situation, where you need money & you dont have the cash to pay. Their purpose is to provide an instant monetary letting you borrow from your lender, whenever you are in need to make any payment. You are not supposed to finish the total credit limit given; so, purchase your loved things, enjoy, buy gifts; but within a limit. You have to set the limit of card use every month, according to your income & overall financial capacity.

2) To be able to configure that card use limit, (i.e. exactly upto what amount of card resource you should spend in a month in shopping & other things), the best way is to draw your own income-expense budget each month. The budget, of course, has to be made according to your income. Then, you can make a list of things you have to purchase or should purchase each month, as per the priority. Initially, try to stick to the buy of priority only....try not to go out beyond the enlisted things too much.

3) Try to reduce the habit of borrowing. More loans are there....more amount of unpaid money piling up on your cards. Those, who take loans every now and then...are generally, more likely to drown into debt. Ita a fact.

4) Why unnecessarily using too many cards? What is the facility? You might say: man, I am getting huge credit balance!! Then give a look at the odd side: more credit balance in your hand, more consumption, more misuse....after all, its hard for us to resist the temptation to spend more, when we are getting more. Isnt it?

5) Try to carry out a monthly calculation on the debt (if any) you have got on each of your cards. This calculation should be done at the starting of each minth, when you are getting your income in your hand & are set to draw the monthly budget. This shall help you to get the clear picture of your present debt scenario; you can act accordingly.


  1. Great article. I agree with you. Credit card interest is one of the biggest expense nowadays. We must get rid of it as much as possible if we want to gain financial stability.

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