We all have some kind of credit card debt, but how can we tell when it's getting out of hand? Well, you should start to worry if your credit card bills take up more than 15% of your monthly income. A worse way to deal with this is to borrow money from one credit card to pay off another. This will only put you deeper in debt.
If reading the beginning of this article made you realise something, it's time to sit up and do something. Don't think for a second that you're the only one with credit card debt; almost 40% of credit card holders are in the same boat. I'll tell you what the minimum payments are.
Yep-minimum payments If you only pay the minimum payment on your monthly balance, what was once a small credit card bill will turn into one that costs thousands and takes years to pay off.
How can I solve this problem on my own?
Well, if you have more than one credit card and you pay the minimum payment on all of them, here's what you should do: get the credit card with the highest APR and pay the most to it. Keep paying the minimum payment to the rest of your cards. Once the credit card with the highest APR is paid off, move on to the next highest APR, and so on, until all of your credit cards are paid off.
Balance transfer deals are another way to help. Try switching to a card that lets you do this. They also offer a period with no interest for 6–9 months, which is a great way to save money.
People who only have one credit card should try not to use it, but if that's not possible, they should keep track of what they spend. You'll be surprised at how much interest you pay on silly things like groceries, gas, and nights out. People tend to forget about money. I agree that credit cards are useful, but you don't have to use them all the time. If you keep track of what you spend for a few months, you'll see the difference.
I know these things sound easy, but it's amazing how many people just use their plastic friend to pay for everything. When you stop and think about it, it's just common sense. Hopefully, these simple steps will get you back on track.
