Some consumers in financial burden know they are spending too much on their credit cards and yet feel they cannot stop. If you’ve already gone “too far”, then there is a free online debt settlement App and easy to use digital tools that could help settle your unsecured credit card debt.
Otherwise, here are four simple, common sense methods to help you control your credit card usage; potentially saving you thousands of dollar a year.
1. Close the Accounts.
If you are the type of person that cannot have extra money lying around because you will inevitably spend it, then this may be a good option. By closing the account, you can no longer spend any money. However, closing an account may hurt your credit score. If you are spending lots of money on your credit cards and are unable to pay the money back, closing the accounts sooner rather than later may have fewer negative effects on your credit score.
2. Leave Credit Cards at Home.
If you don’t have the cards when you go out, there is a greater possibility that you won’t spend money on extra items you don’t need. Instead of relying on your credit cards to pay for things, start using cash (or a Debit Card). Create a budget you can live on each week and only use that amount in cash. When you run out of money, you know you can’t spend any more.
3. Remove the Convenience.
Stick your cards in the freezer or put them in a place that you can’t easily get to, such as a locker or on a high shelf buried in a box. The idea is to make your credit cards hard to get to and take away the lure of a convenient credit limit. Knowing the charge won’t be denied and thereby won’t immediately affect your bank account. The problem is that many people cannot pay the full amount owed on the credit cards, so they begin to make minimum payments and accrue interest. This is typically the beginning of a vicious cycle of constant struggle to pay off your credit card debt.
If leaving the cards out of your sight won’t work, then cut them up. Use a shredder or scissors to make sure the card(s) cannot be put back together (especially by an Identity Thief).
Learning how to stop using credit cards can be difficult but beneficial. Have you ever calculated how much money you would save in interest if you paid off your credit card? For many it can be thousands of dollars each year. If you can find a way to stop using your credit cards and start paying them off, you will be amazed at how much debt you can eliminate. Many people find it is better start with smaller credit card debt because you can pay smaller amounts off quickly.
The easiest way to stop using credit cards is by finding the best method for you. Each person is different; there isn’t a one-size-fits-all solution. As you have seen, the good news is that there are quite a few options.
Please Note: This information is for educational purposes only. For specific advice, please contact a qualified professional.