Based on Credit Card Transaction statistics released by Bank Indonesia during the 2017 period, the volume of credit card usage transactions until July 2017 there are around 26-27 million transactions each month. The government certainly hopes that this number will continue to increase so that the level of non-cash transactions in Indonesia can develop like other ASEAN countries. One of the actions taken by the Government through Bank Indonesia for example is by applying a maximum credit card interest rate of 2.25% per month.
The use of credit cards as a payment method can actually provide various benefits. Card owners do not need to carry large amounts of cash, which of course can be dangerous. In addition, they can also feel various attractive offers or promos provided from the issuing bank. The most advantage that can be felt is because the principle of a credit card is in the form of “buy now pay later”, where at the time of the transaction the cardholder is bailed out first by the Credit Card issuer.
But with all the benefits offered by credit cards, in fact many people are actually still turning to cash transactions and are always looking for ways to deactivate their credit cards. This is usually done when the credit card bill has begun to suppress the flow of finance, the option of finding a way to deactivate a credit card is expected to ease the burden on the card owner, so there is no need to worry about bills that swell every month.
Reasons for Disabling Credit Cards
The existence of this plastic card in fact can also make its owners more tempted to shop, which makes it increasingly difficult to control their use. There are several ways to deactivate credit cards that can be done, but first let’s look at the following points:
Nominal Bill is Too Large and Always End with Minimum Payment
The existence of plastic cards that tend to make people more tempted to shop often leads to a bill that is too large, and makes the card owner more difficult to pay. The step that is sometimes done is to continually pay the minimum payment . Unfortunately, this step is actually not right because it only piles up debt for months, and is not at all helpful to be free of debt. Disabling or closing credit cards is often done so that they no longer need to struggle with these monthly bills.
Have too many credit cards
For someone who is considered to have a good reputation, usually will continue to get additional credit card offers. Not infrequently the credit card is even sent directly to the house without making a request in advance. Unfortunately, if the credit card is too much and the card owner is afraid that he cannot control the use or payment of bills, it’s a good idea to close the card so as not to adversely affect his Historical IDI score.
Ever Become a Victim of Credit Card Fraud
The rise in crime rates in credit card data theft in Indonesia can indeed lead to adverse impacts. Card owners can get a number of bills for a number of transactions that they have never actually done. The shock caused by this disaster is usually used as the main reason by the card owner to immediately close the credit card he has.
Rarely Use a Credit Card
The next reason is because cardholders rarely use credit cards. The lack of transactions carried out every month does not have an impact on the obligation to pay a fixed fee. There are a number of fees that must be paid every month or year, such as annual card fees or stamp fees. These costs are indeed small, but for those who feel they don’t want to pay a fee for something that is rarely used, of course it can trigger a proposal to close a credit card.
How to Deactivate a Credit Card
Spend the Rewards that You Have
Before planning to deactivate a credit card, try looking at the billing statement last month and check again how many remaining rewards can still be used. Usually these rewards can provide multiple benefits. It is not impossible that the card owner can get free items from the rest of the rewards he has. This type of reward is usually in the form of nominal money that can be spent. But some other types of credit cards have rewards in the form of points, which can be exchanged for objects that have been prepared by the bank.
Contact the Call Center or the Related Customer Service Bank
The next step is to call the bank’s call center in question, then inform the bank to process the credit card closure. When going to close a credit card, the card owner can also visit the issuing bank where he first applied for a credit card. Usually the bank will also ask the reason for closing the credit card. In certain cases, the bank will usually offer a higher credit card limit so the card owner cancels the credit card closing process. But if the card owner has a strong reason, the closing of the credit card will be processed immediately.
On the same occasion, don’t forget to check the remaining cashback you have. If the credit card used has a cashback facility, ask the bank to help check the data. Then, ask the bank to transfer the remaining cashback to the bank account that the card owner has.
Disable Bill Payment through Auto-Debit Your Credit Card
Some people use credit card auto-debit facilities to make various payment bills, such as water bills, electricity, postpaid cellphone numbers, cable tv, sports club subscriptions, etc. Start disabling the payment. Make bill payments with other methods, such as auto-debit from a savings account.
Pay Debt Remains Still Charged
Don’t forget, usually when closing a credit card, the card owner is still required to pay off the last bill so that the credit card closure can be processed faster. The bank will not just close the credit card if the owner of the card has not completed the remaining responsibilities that are obligatory. Payments that must be paid include transactions with interest, stamp fees, and annual fees to be paid. Failure to pay the remaining debts that are still ongoing can have an impact on the credit score in the Historical IDI.
Request a Proof of Credit Card Closure
The most important step to deactivate a credit card is to request a proof of credit card closure. Written evidence like this is important to have as a preventive step if something unexpected happens, for example when a new bill appears to pay for a number of transactions that you actually never did.
The Main Problem When You Want To Close Your Credit Card = Not Being Able To Pay Remaining Debt That Is Still Running
How to deactivate credit cards is actually not difficult, but often the problem encountered is the inability of the card owner to pay off the remaining debts that are still running. The step you can take is to use a relief program to pay off credit card bills with a one-time discount or low-interest installments with extended tenors. You can get this relief program through a company that provides a debt management program.
Companies that provide debt management programs will help you to provide the best strategy so you can be freed faster from debt. This can be done by looking at the ability to pay and the financial conditions that you are facing. Why so? Because companies like this are usually filled by a team of professionals and more experienced in negotiating with the bank so that you can get a better program for you.
The Artful Dodger international is the first technology-based professional services company in Indonesia, which provides a debt management program. This program is designed so that consumers who are in debt, have the ability to control their finances again. The Artful Dodger Indonesia helps clients through debt management programs, specifically designed to suit different needs for each client. This program is a combination of education on various opportunities to increase income and reduce expenditure, as well as conduct negotiation processes on existing bank debt requirements to reach the amount of payment that is in accordance with the ability. The Artful Dodger Indonesia head office was established in Jakarta in 2015 by a founding team that has collective experience in finance including debt settlement for more than two decades. The Artful Dodger makes Indonesia the center of operations as well as a blueprint for the company’s development plan to other ASEAN countries. Since July 2016, The Artful Dodger Indonesia has become the first company in Asia to be accredited by the International Association of Professional Debt Arbitrators (IAPDA).