A credit card is somewhat different from a regular cash loan. It is convenient to use it to pay in stores, as well as use ATMs and various terminals. However, if spending is not monitored, large indebtedness can accumulate over time. In this regard, it is important to know the useful rules for using a credit card.
Planning expenses and payments
The first thing to always remember is that the funds on the credit card do not belong to you, but to the bank. Consequently, the latter imposes certain requirements on the use of the loan and its repayment to its clients. The more borrowed funds you borrow, the higher the debt will be. In addition to the loan itself, you will have to pay a considerable amount of interest, which in the end will result in sad consequences for you and your family. The constant realization that you are using other people's funds and increasing debt can make you less likely to pay with a credit card.
Always remember the purposes for which you issued a credit card. Most often, such a decision is caused by the need to purchase some thing or help loved ones who find themselves in a difficult financial situation. If you managed to achieve what you want, start thinking about how to pay off the arisen debt, and not about the fact that now you have an "extra" amount of money and you can dispose of it as you please.
You must have a separate debit card to pay for purchases and withdraw cash. Try to credit all your income to it, and transfer only part of your personal funds to a credit card to pay off monthly payments. If you only have a credit card on hand, this will inevitably cause difficulties with the rational management of money: credit and personal finances will be a single whole, which will only lead to an increase in debt.
Think about what your lifestyle was like before you got your credit card. Chances are, you spent less on a daily basis buying only certain foods and making other purchases. Make a plan for your monthly expenses, including only the most essential ones. Of course, this can cause discomfort, but such a measure is only a forced decision until the moment the debt is fully paid off.
If you still find it difficult to control yourself, and you constantly want to withdraw the next amount from your credit card, transfer it to your relatives or other people whom you fully trust. This is one of the most effective ways to control the situation. If desired, the people who will have the card in storage can even change the PIN code to it, or simply hide it securely. Save only the credit account number so that you can make monthly payments with interest on time.
How to pay off a loan faster
Full repayment of debt and termination of the agreement with the bank is the only way to permanently part with such a "trap" as a credit card. However, this is often very difficult to do, especially if a large amount was spent under the loan agreement. Most banks allow the possibility of monthly crediting of only interest to the card, which makes loan payments small, while the loan itself remains unchanged.
Draw up a clear schedule of loan payments or request it from the bank. Considering that a credit card, in fact, has no expiration date, you can choose the most optimal period for yourself to fully repay the entire amount with interest. To do this, you need to calculate the amount of funds remaining with you monthly from income. It is desirable that this amount exceeds the amount of payments assigned by the bank. As practice shows, most loans can be closed in just a year, if you follow the established schedule regularly.
Consider the possibility of raising additional funds, which will not only allow you to pay off debt faster, but also completely stop using your credit card. For example, you can get a higher-paying job or start working part-time. Of course, this will make you more tired and devote less time to your daily needs, but it will not be too high and short-term payment for parting with existing debts. Perhaps your closest relatives can support you in the fight against debts. Finally, try contacting the bank: if you have made loan payments regularly for a long time, the bank may lower the interest rate and offer other conditions for faster and more convenient debt repayment.
