At this time, the credit card payment has become a tool used frequently enough in the community. However, many credit card users who are stuck in its use. Actually, there is no problem with the credit card itself. The problem here is that if you use a credit card is not in accordance with what has been suggested, even by the credit card issuer itself.
Now, if you are one of those people who have problems with the use of credit cards? To find out, see if one of the following conditions are similar to your current situation:
# Balance your credit card debt is approaching the limit.
STEP 1: PAY, PAY, PAY
One day in January, a young mother named Tuti, 29 years old, came to me with the problem. Most of what he wanted to talk about is the budget management problem, namely how to manage revenues and expenditures (these young mothers had an income less than 2 million). After that, our conversation also talked about the credit card problem. He had three credit cards, which each have a debt balance on its own. Every month, he used to pay the minimum for each bill. At this time the debt balance of nearly 1.5 million.
“Is this when you have the money to pay all that?”
“You mean, pay is paid off, right?” he asked.
“Yes, pay in full.”
Tuti hesitated. “Well, no, really.”, He said.
“But?” I asked.
“But it was.”
“But what?” I asked.
“But not how.”
“Oh, yes?” I said, looking again to the amount of the bill. “How much cash do you have now?”
“Approximately 1 million. It is also to supply a reserve fund.”
I thought, if she pays credit card bills with money they are now, so he will not have to supply funds remaining reserves. Reserve fund of Rp 1 million is not big enough, especially if the money was used to pay credit card bills.
“Tell you what” I said. I then took a paper, and make four columns. In the first column, I asked him to write the name of each credit card issuing bank. In the second column, I asked him to write the number that is still a debt on each card. In the third column, I asked him to write what the interest rate charged by each issuing bank. In the fourth column, I asked him to write what the minimum payment that must he paid on each bill. Listed below are the results:
Publisher Bank Balance payable — — — Interest Rate Minimum Payment Amount
Bank A 529,100 ————— —– ———- ————- 2.75% – 52,910
Bank B 717,513 ————— —– ———- ————- 2.50% – 71,752
Bank C ————— ———- —– 203,000 ————- 3.10% – 50,000
Number 1,449,613 ———— ———————————- —- 174,662
First of all, you said that you do not have enough money to pay these bills are paid. Really? ”
“Yes.”
“Then, we’ll installment only,” I said. “How much of your income every month?”
1.8 million per month.”
“My Minimum USD 175 thousand.”
“Then, you have to set aside a larger amount of your minimum payment. This is so that your debt can quickly run out, so you will not constantly exposed to interest. Is not it?”
Tuti nodded. Here he agrees with me.
“How much should I set aside every month?” he asked.
“Whatever you say,” I said. “Two hundred, three hundred, the higher the better. But I suggest you try it set aside 30 percent of your income.”
Tuti thought for a moment. “My income of about Rp 1.8 million a month.”
I count on a calculator. “Thirty percent is 540 thousand per month”
“Huh !!???” Tuti gawking.
“It’s huge. Cooking for it to be set aside to pay my debt?”
“You want to quickly run out no debt? If the debt is not quickly run out, you will continue to get interest. The key here is that your debt should be made smaller and smaller.”
Tuti thought for a moment. “Okay”
“And what division?” Tuti said again. “Do I have to for money 540 thousand to pay all the cards in the same?”
“No, ma’am Tuti. Look.” I said. “First of all, pay all your cards at least.”
Tuti looked again into the paper. “That means, the total is 174,662.”
“Yes. Now how much rest? 540,000 minus 174,662?”
Tuti counted in calculator. ” 365,338″
“Okay use the remaining money 365,338 was to use the card to pay most of the interest rates.”
“Why is not the biggest debt balance?”
“No, Mrs. Tuti. The greatest interest rates.”
Tuti turned into paper. The card interest rates at most of the Bank C. The flowers are 3.10 percent per month.
“Most people think that the first priority should be directed to the card balance is the biggest debt. Actually no, the first priority should be directed to the card to charge interest rates the most. This is because the interest rate is the amount you pay. So it was natural if you pay the card interest rate is the greatest advance. ” I said.
Tuti thought for a moment.
“But my card this C balance debt is 203,000. But the rest of the money had been allocated Rp 365 thousands”
“There is nothing left,” I said.
“Dikemanain, here, the rest?” he asked.
“To pay the charge card interest rates next big,” I said.
Thus the reader. Tuti was finally able to spend their credit card debt within four months. As an alternative, if Tuti want to pay credit card in full, he can also find other assets that he had to be sold, and the money could be used to pay off her debts.
So readers, pay your card bills in full. If you do not have the money, looking for what assets you can sell to pay the bill. This is because your bills will bloom, and flowers that will bloom again. And so on. All the assets you have must be used to alleviate – and even erase – your debt. If you can not pay your bills paid off, so budget about 30 percent of your income every month, and use it to pay your credit card bills are minimal, and use the rest to pay the interest rate card is greatest.
Pay your bills by taking a new debt. This is popularly known as “dig a hole closing hole.” “Well, Mr. Safir did not bener nih,” so maybe you thought. “I had to shut Cook debt with more debt on the other,” so you think again.
I remind here that the purpose of the strategy of “dig a hole lid” is to relieve your debt burden. This strategy will not make your loan balance decreases, but relieve the burden of interest you pay. Thus, this strategy can be used not only in credit card debt, but also in your debt to another. Strategy “dig a hole closing hole” will be effective as long as two conditions are met:
1. The amount of your new loan is NOT MORE than your loan balance is long.
2. The interest rate of your new loan must be less than the loan rates that you currently pay.
See, dig a hole closing hole is not always bad, right? By fulfilling the above requirements, then you can lighten your debt load. So also in the use of credit cards.
How to practice in your credit card payment? If you have a credit card balance, so at this moment there are some banks that offer balance transfers with interest rates lower. Here where you can transfer balances on your credit card debt to the bank, and to then just pay your bills with interest rates lower than the interest rate on your credit card. Thus, the advantage here you will get ‘cut’ interest rates. Not bad, right?
But it must be remembered that this strategy is just a temporary solution, where your goal is to ease the burden on your card debt. After all, you still need to pay your outstanding charges. And to note, too, so do not jump to believe with low interest rates offered by these banks. Watch and read a good supply provided by the bank, before you decide to transfer balances on your credit card debt.
STEP 3: PAY THE BILLS WITH ANY hull, AND ARRANGE YOUR USE
Discipline yourself. At the time the bill comes, and you do have the money, just pay your bill in full. Do not get used to not paying your bill in full. If you do not pay your card bills are paid off, the flowers can ‘kill’ you slowly.
Remember, your credit card just a way for banks to borrow money for about 25-30 days. After that you still have to pay in cash. If you can pay the bill in full, good. But if not, it would be better if you stop the first use your card.
Plus, if it is not trapped at all, do not cut your cards. Remember, there was a time in your life where you are in a state of emergency, and do not have the cash to pay a transaction. Maybe at night you need to go to the Emergency room at the hospital. Here your credit card can be useful if you do not bring enough cash.
I personally have 2 credit cards, one is use for paying the petrol, insurance fee, and alternative expenses for every month, but another one I only keep for crisis use. It is good and convenience to have credit cards since I don?t have to to hold giant add of funds as soon as I am going out from household. Except for that, credit cards also act as a temporary loan if you don?t haven?t the cash to acquire it, although I will maintain my advantageous credit score in the slightest degree time. Some of my friends have added than one mastercard and each one contains a credit limit, although they are not aware that as soon as the credit limit for all cards are more up, the total can be a lot. They already fallen into the habit of using credit cards to increase their salary, but they never worry about this. I’ve got tried to guidance them thus that they can stop using credit cards because they owe people tons of funds, however they don?t listen to me. Because they need bad credit score and there are plenty of credit card corporations have rejected their request, thus they have tried to use unhealthy credit mastercard thus that they can continue to pay the capital and obtain back on their feet financially,. I don?t have different technique to help them, just hope that they’ll pay off the credit soon.