Out of all of the available payment options in this day and age, the credit card is known for being the most convenient and preferred choice of the modern citizen. With just a single card, one can buy all the goods and services they’ll ever need both online and offline thanks to its universal acceptance in most establishments both locally and globally.
However, its advantages can also lead one to suffer the disadvantages that it brings. The main disadvantage is the potential to rack up a huge amount of debt in a short period owing to the lack of upfront payment, which can give rise to unhealthy spending habits.
Hence, if you’re facing such a problem at present, here are a few tips on dealing with it as soon as possible:
Create a budget and stick to it
Given how credit cards generally charge high interest rates, it’s crucial to clear them sooner than later lest they become too much to handle. As such, the more cash you can set aside to pay off your credit card debt every month, the better off you’ll be.
Since every dollar counts, it’s necessary to create a tighter budget to cut out inessential expenses temporarily. List down your average income and all the usual expenses that you need to address monthly. Categorise them according to importance to determine which ones are unnecessary to your day-to-day survival, such as streaming subscriptions, gym memberships, down to the little purchases, like your daily coffee takeout at your favourite shop, for instance.
Living without these extras can be difficult at first, but remember that it’s only for the time being and that you’ll get to experience them once more after you’ve settled the existing debt.
Find ways to earn extra income
Acquiring extra income is recommended if you want to accelerate your repayment efforts further, or there are just some things you can’t part with in the previous recommendation. The most straightforward method to earn more income starts with your career. You can either work more hours to earn extra pay or, if you believe you’re in the perfect position for it, ask your superiors for a raise.
There’s also plenty of ways to acquire cash while you’re out of office hours. Taking on freelance tasks, turning your hobbies or other skillsets into profit, applying for a lower-interest fast cash loan, or even selling things you no longer need are only a few of the ways to get that extra coin.
Seek nonprofit credit counselling or financial assistance
Despite what most people may believe, credit counselling offers more than creating debt management plans for your financial problems. These agencies also allow you to get in touch with their credit counsellors, who can help make heads or tails regarding your current credit card debt situation.
These counsellors can offer a lot of services to help you deal with your credit card debt problem more effectively, such as assess it from a professional perspective, provide you with feasible options to help you put together a debt repayment plan, and supply you with financial education courses, to name a few.
You can also minimise the interest rate of your loan (and thus how much you need to repay), by going to an approved debt consolidation company in Singapore.
Credit cards are excellent and convenient payment methods that are now indispensable to most Singaporeans today. However, the debt that can accumulate from abusing it can become unmanageable if one does not exercise caution when using it.
If you have some pricier purchases in mind, it’s better to get a personal loan from licensed money lenders in Singapore rather than use your credit card to get a lower interest rate and ultimately save more money.