When you have credit card debt, it is not uncommon for people to have more than one type of credit card. The existence of arrears on various credit cards can certainly make credit card debt pile up and increasingly difficult to repay. Having some credit card debt at the same time can often make your head dizzy, so see how to pay off credit card debt that accumulates in the following points:
Stop Using a Credit Card
The first step you can do as a way to pay off your credit card debt is piling up, is to stop using a credit card. There is no point in working hard to find ways to pay off debt if you don’t stop using credit cards yourself. By continuing to shop using this plastic card, your total arrears will increase. As much as possible, keep your credit card away from you, but make sure it’s placed in a safe place. This step will help you to control the desire to shop, and still protect the security of credit cards at once.
Reorder your budget
After committing to no longer using a credit card, the next step is to rearrange your budget, especially in expenses. Calculate again how much your monthly income is, then calculate the various fixed expenses that are made every month. Some definite expenses such as rent a house (if renting), food costs, fuel, and insurance. Set aside money for these categories first, because it is usually an important expense spent every month.
When you have the desire to pay off credit card debts that accumulate, there are usually things that must also be sacrificed. Yes, you have to give up social life, meaning that there will be massive cuts in entertainment costs. You have to reduce the intensity of shopping, eat at restaurants, or travel to save.
Similarly, when you buy things, you also have to consider many things. Look again whether you really need the item, have you had similar items. If you really need to, do you have to buy with a certain brand, and can the purchase of goods be delayed until the debt problem is over? The point is, don’t be in a hurry when going to buy goods especially at crucial times like this.
See Deposits of Money that Have Been Allocated for Other Things
In recent times you have been routinely saving to be allocated to certain things, such as buying assets or as a vacation fee? If yes, it is better to allocate the money to other things that are more priority, namely paying off outstanding debts that are still running today. Think carefully whether it would be wiser to force the will to allocate money in these posts, rather than paying off debts that are clearly in arrears to date.
Use emergency funds that you have had in the last few moments to help pay off debt. Check again what the nominal is in the bank account, and recalculate how much nominal you can use to start paying off the remaining debt.
Simply, refinancing interpreted as a step to use new loans to pay off old debts, it’s just that this new loan has more mitigating provisions than the old debt, for example lower interest rates. Refinancing programs can be the right and wise step if you are able to choose a program that is really good and not more burdensome.
Usually in applying for a refinancing program, a guarantee will be required (can be in the form of property / vehicle) Later the assets you submit will be estimated, this is where you can get a new loan. So, the cash you get can be directly used to pay the remaining old arrears. In the meantime, you also have to pay off the loan until it is paid off.
You can contact a consultant who helps with your debt management , to get a recommendation from a financial institution that can provide a refinancing program for you, so you don’t choose the wrong interest program, and loans that can be used to pay off debts.
Participate in Debt Management Program to Be Free from Debt
You can get programs like this from a debt management provider company, which has experienced consultants. Not to mention, if you have multiple debts in arrears at the same time, the consultant can help you in developing a strategy to decide which type of debt must be completed first, according to the financial conditions that you currently have. Here are some types of relief programs that you can use to start debt free at the end of the year:
One-time discount / discount
This type of relief program allows customers to reduce their total debt to smaller amounts. As the name implies, even though the customer gets a discount in his debt (generally 20-50%), they must pay directly in one payment. In some cases, this one relief program can give cardholders discounted discounts of up to 70% or even more, according to certain financial conditions.
Extended Installments with Low Interest
Unlike the discount program in one pay, this one program is suitable for those of you who are financially less. In short, customers who have credit card arrears or KTA arrears can extend their installment tenure to be lighter, the interest earned is lower than the prevailing interest rate in general. If the normal interest currently running is in the range of 2.25%, then it is possible to get interest of only 0-2%.
Another program with this one, this type of program is a combination of the two types of programs above, namely customers get a discount and the remaining payments can be made in installments. The bank will also see the conditions experienced by the customer first. If the customer has supporting conditions that make it more difficult to pay off the debt, then it is likely that they can get this program (provided that the bank in question has the program).
If you want to try to use a debt management company to get a debt management program, then you can try the services provided by Reynard the Fox.
Reynard the Fox 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. Reynard the Fox 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. Reynard the Fox Indonesia headquarters was established in Jakarta in 2015 by a founding team that has collective experience in finance including debt settlement for more than two decades. Reynard the Fox made Indonesia a center of operations as well as a blueprint for the company’s development plan to other ASEAN countries. Since July 2016, Reynard the Fox Indonesia has become the first company in Asia to be accredited by the International Association of Professional Debt Arbitrators (IAPDA).