Credit card misuse is extremely widespread. In fact, due to the effortlessness with which they can be used and the high percentage of interest they charge, they are the number one reason people find themselves in debt. This is especially true due to the fact that you begin to pay interest in the very moment you make a purchase. Add to that a missed payment and you are in big trouble. It is absolutely necessary to be strict with your finances or even consider counseling.
There's a common misconception that you can pay a credit card company only once a month. The truth is you can pay them as many times as you like. So pay as often as you can, preferably once a week. Weekly payments mean that that you pay less interest because your balance goes down with every payment. It is also easier to make small, weekly payments than a single, large one.
If you find yourself in a financial emergency due to your credit card spending, however, there are organizations that can help. One of the many such non-profit organizations that exist in many parts of the US is the Consumer Counseling Centre of America, known as the CCCA. They can help you resolve unsecured debts such as those incurred with credit cards.
CCCA is very different from a consolidation loan agency in that CCCA does not give loans. What they do for you is simply consolidate your debt for you, and negotiate better interest rates with your creditors.
CCCA takes a monthly payment from you and then pays off various creditors from that amount. When you participate in a CCCA or any other similar non-profit program you gain in terms of peace of mind.
You are also benefitted in that you are sure your payments are being made regularly, on time, thus getting creditors off your back. You will also avoid late fees as all of the payments are being made by someone else.
If your request for a debt consolidation loan is not approved, don't be angry. It's important to understand that debt such as credit card debt is unsecured, meaning there is nothing of value backing it. The only way to receive such a loan is to present one of your possessions as collateral, like your home. This isn't recommended, however, as there is always the possibility of losing your home.
Once again, the best plan for getting yourself out of an economic emergency due to credit card spending is to exercise spending restraint and get credit counseling.
There's a common misconception that you can pay a credit card company only once a month. The truth is you can pay them as many times as you like. So pay as often as you can, preferably once a week. Weekly payments mean that that you pay less interest because your balance goes down with every payment. It is also easier to make small, weekly payments than a single, large one.
If you find yourself in a financial emergency due to your credit card spending, however, there are organizations that can help. One of the many such non-profit organizations that exist in many parts of the US is the Consumer Counseling Centre of America, known as the CCCA. They can help you resolve unsecured debts such as those incurred with credit cards.
CCCA is very different from a consolidation loan agency in that CCCA does not give loans. What they do for you is simply consolidate your debt for you, and negotiate better interest rates with your creditors.
CCCA takes a monthly payment from you and then pays off various creditors from that amount. When you participate in a CCCA or any other similar non-profit program you gain in terms of peace of mind.
You are also benefitted in that you are sure your payments are being made regularly, on time, thus getting creditors off your back. You will also avoid late fees as all of the payments are being made by someone else.
If your request for a debt consolidation loan is not approved, don't be angry. It's important to understand that debt such as credit card debt is unsecured, meaning there is nothing of value backing it. The only way to receive such a loan is to present one of your possessions as collateral, like your home. This isn't recommended, however, as there is always the possibility of losing your home.
Once again, the best plan for getting yourself out of an economic emergency due to credit card spending is to exercise spending restraint and get credit counseling.
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