Debt accumulate many reasons, one of them because of lack of knowledge how to use credit cards wisely, right?
If we feel the wallet is broken because of a debt pile due to credit card, this is the right time to start paying off your debts.
How to pay off credit card debt with alternatives?
Consider the following four alternative suggestions:Make sure before paying off, we have calculated the amount of debt from the credit card we have.Make priority of credit card debt (if more than 1 card), and immediately pay off the highest credit card debt first.
The first alternative, to pay off credit card debt is by selling assets or paying with savings or deposits. Indeed, selling the assets is not fun, especially considering the business we have done so far to collect these assets.
But think again, what makes us stuck with the debt we have it? It must be because most of the assets are not productive.
The second alternative, debt restructuring by applying for a soft loan from family or close friends. Remember yes, soft loans are given because based on the closeness of the relationship.
If we are given a loan that means we are still trusted by them, so should use the loan as best we can to alleviate our debts.
And usually this soft loan with no interest and flexible payment, so must keep the commitment and ethics in paying it.
The third alternative
Find another loan for example in the bank to pay off credit card debt. The loan is a lower interest rate loan, such as what are the lower interest loans? You can ask the bank officer you are visiting.
For your information, now the average credit card interest rate is 2.95% per month. So look for a loan whose interest is lower than that value yes!
The fourth alternative
Negotiations to the bank. Remember, this solution can be done when we have no other options. Negotiating is possible, but many people do not know and are reluctant to do so.
Through this alternative debtors will get a lot of ease as long as it still shows good faith to pay off its debts. Usually during negotiations, the bank will offer several options, such as: lower interest rates (reconditioning).
Or offer loan extension to the debtor (rescheduling), eg change the tenor from 6 months to 1 year. Or the latter offers a partial or complete change of the credit terms (restructuring).
We need to realize at the beginning that paying off credit card debt takes no time. It takes patience and determination. Having a credit card does require the responsibility and knowledge of its owner
A few tips, use credit cards only for emergencies (sudden expenses). For example when paying hospital fees. And make sure after using a credit card, we immediately pay off the bill in full.