How to Tackle Credit Card Debts Wisely  

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Many Singaporeans use credit cards for their transactions because it is convenient. For those who managed their cards well, they should be praised. However, for those who are still tacking their debts up to this moment, they deserve help. Paying off credit card debts is challenging especially if you think you do not have enough. Forget about regret and stop sulking. It is time to move and pay off your credit card debts as soon as possible.

For some, it is easy to just ignore credit card bets but it will haunt you every day. It will not do your credit standing good. Paying is not only challenging but a daunting task but with some strategies, you will be able to pay it off with dignity and order. Here are some ways on how to tackle your credit card debts wisely:

  • Pay more than the minimum: As much as possible, you need to pay the full due amount but if you cannot make it, pay at least more than the minimum. Remember that credit card companies love that you pay the minimum because they can get their hands on the interest. This will look like you are just paying off the interest and barely touching the actual amount of your debt.


  • Prioritize debts with the highest interest: People tend to pay the lesser amount first. This is not wise because you are just accumulating the interest. If one credit card is charging you with 11% and the other is 9% annual percentage rate, you have to prioritize debts above 11%. Before touching the other debt, make sure you paid it.
  • Talk to credit card companies: Everything can be resolved through talking. If you cannot make it, make sure that the credit card company will know. Explaining your financial situation to them and ask for something can be of great help. Many credit card companies can even lower the interest rate or waive something to give you chance to catch up with your payments.
  • Never close cards with existing balance: The easiest thing to do is close cards but this will be your greatest mistake especially if there is an existing balance. This can have an effect on your credit score and standing.
  • Look for other sources: No one likes to forego of something but it needs to be done if you want to clear your debts. If you bought a car, the old one should go so you can pay the debt. If you have a Jacuzzi, it is time to consider selling it especially if it is not used that much.

Now that you know some hacks, you have to immediately move. There is no use sulking over it. Sulking will only waste your time. After tackling your debt, it is high time that you know some budgeting. If you cleared all your debts, as much as possible refrain from using it.

You also need to track your spending. When buying something, make a mental note of the things that you bought – maybe you do not need it. It would be practical if you put it in a paper so you can see the figures and the losses.

Man removes cash from wallet

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