Ditching your credit card habit
In Credit Repair of CreditGuru (April 30, 2009 1:05 am)
Possibly the main reason for the prevalence of credit card debt is the complete social acceptance of the use of plastic money. They cards offer ease and convenience to people that want to make purchases without using cash. These days you don’t even have to sign your name to walk away several hundred pounds worth of goods.
Having just one card is generally not a real debt issue, but most people do not just have one card they have three or five or fifteen. When you have many cards, it is very easy to let your debt problem get out of hand as it may look like you only have small debts but over a number of cards it will add up.
The best thing you can do to avoid debt problems is to get a grip on your credit spending right away. Another option is to take the credit card debt from your higher interest cards and transfer it to one with a low interest rate.
After you have cleared away the debts on one of your cards make sure to destroy it. Focus your payment efforts on the card that has the highest interest rate, when that is cleared move on to the next one and so on.
Draw out the money for each week from the bank, use this money only and do not use your credit cards at all. This means that you will not be spending more than you earn – which is how debt does not develop.
If you can’t make the payments with cash for items you purchase everyday than use a cheque instead but don’t use your credit cards unless it is a last resort.
If you pay the credit card company right away, when you receive the bill, then you will be less likely to have further debts that month because you have already spent that money. In a way, this is a personal debt management plan.
If you use cash you will reduce your reliance on credit cards and your debt will decrease if you continue to pay it.
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