It’s never been easier to get yourself into debt. Consumer debts have been at all times high and with the current credit crunch, you can agree that things are getting even worse. It’s fine to have a bit of debt, but once it’s unmanageable, it can cause serious stress and give a negative impact on every aspect of your life, including your health. If you are wondering if there is a way to live a secure and happy lifestyle without involving yourself with debts, the answer is that it’s possible. However, getting a financial institution to help you live a debt free life is essential.
Managing your credit card to cut the debts
Cancel your credit cards: a necessary evil of the current way of living, credit cards is the main contributor to most of your debt problem. 10 years ago, there were less than 10M credit card accounts in Australia but today, this number has ballooned to 15M- a ridiculously fast population growth. This population is called the generation X and Y. This is the very generation where you are. It’s the same generation which doesn’t wish to sacrifice their lifestyle for sake of financial conservation especially with the coming of credit cards. Nevertheless, when you live outside your means by overspending on your credit, this becomes a very poor decision. Your credit card can become a slimy slope that will astonish you with insurmountable payments and high interest rates over time.
Perhaps for emergencies which need solving immediately, it’d be more appropriate to approach payday and cash lenders instead. These lenders ensure you’re capable of repaying a cash loan through credit checks and will constantly monitor your repayment. This makes it more difficult for you to simply forget about your bills.
Usage of Debit Cards
If you can put your credit card in a safe hidden location, you are less likely to use your card for things which you don’t necessarily need. Instead use your debit card so that you can be sure to spend within your limits. The best thing with debit cards is that most of them are nowadays endorsed by credit card companies, VISA included. With the use of debit card you use the option op of credit card but the money is taken from the bank account. Hence, it will only allow you to make purchases up to a certain limit
Solve your existing debt crisis
The common problem to credit card debt is that the repayment is continuously delayed due to the borrower’s inability to repay the debt. The interest continues to pile upon each other, and what was originally a small debt accumulates to ridiculous proportions.
What you need to do to avoid this is to speak to your creditors. Pay a personal visit to your bank or creditors office and explain your situation to try and negotiate better terms. The last thing a creditor would want you to do is file for bankruptcy where they won’t get paid, so they’ll most likely be open to negotiations to benefit both parties. You could even consolidate your debt into a single loan with lower interest rates through short term loans.
You can choose from a number of high-interest savings accounts in the market today which offers you a huge boom especially if you are looking to have as debt free life. These savings accounts will offer higher interest rates that will give you more of your money. Using these accounts to out your extra income in higher interest ensures that you have a stronger financial portfolio in time to come, while enjoying a debt free situation. It also becomes very important especially when something happens unexpectedly and requires a huge amount of money, you can easily dip into your saving account instead of using your credit card which will push you further into debts.