Posts Tagged ‘rich’

Possibly the main reason for the prevalence of credit card debt is the complete social acceptance of the use of plastic money. They cards offer ease and convenience to people that want to make purchases without using cash. Nowadays you don’t even need to sign a piece of water to purchase hundreds of pounds worth of products.

Some people have as many as 15 credit cards and that is where the real problem lies. With multiple cards, it is very easy to run up multiple debts, in a very short period of time so that it is possible that you can soon be drowning in debt from your credit cards let alone all the other sources of credit at your disposal.

You need to get a grip of your credit card usage if you are using your card all of the time to pay for “everything” the chances are you are heading for a serious financial problems. Another option is to take the credit card debt from your higher interest cards and transfer it to one with a low interest rate.

After you have cleared away the debts on one of your cards make sure to destroy it. Start the process by focusing on the credit card with the high interest rate and then move down from there.

When you draw out money every week, make sure to not use any other money from your credit cards. This way you cannot spend more than you have coming into the bank.

Payments that cannot be made in cash should be made by cheque, if that is not possible then you can use your credit card as a last resort, but you should have the money in the bank ready for payment.

If you pay the credit card company right away, when you receive the bill, then you will be less likely to have further debts that month because you have already spent that money. In a way, this is a personal debt management plan.

Using cash whenever possible will reduce your reliance on credit card use and help to stop your increasing debts.