7 Card Tricks to Deal with your Debt
Clearing yourself of bad debt isn’t going to happen by magic. There’s no quick fix solution to the problem of mounting credit card debt either. All of that balance shifting sleight of hand and the extra cards up your sleeve may make you feel like you’re artfully managing the debt but in reality, it’s all just smoke and mirrors. The debt’s there all along and it’s getting worse.
However, that’s not to say you can’t be card savvy and deal with your debt in a clever, considered way. These are the seven key points to bear in mind when you’re tackling credit card debt. So, start 2010 with a new approach to plastic spending and deal with your debt.
1. If your credit card provider charges annual fees, it’s time to make them disappear. With so many cards on the market that don’t, the annual fee is becoming the reserve of a select few credit card providers that offer high-end reward programmes. Your standard card should still offer incentives, like points back on your purchases but in a competitive market it’s not a service you should have to pay for.
2. Ideally, manage your credit card debt by paying off the balance each month. Carrying your debt over from month to month will cost you money, in terms of interest, as well as the leverage to shop around for a more competitive deal. If you are considering a card that advertises an amazing introductory rate, or 0% balance transfers, make sure you read the small print carefully. Often, the long-term cost of these cards can be extremely high so get advice about which is the best to go for.
3. On the subject of balance transfers, they can seem like a magic source of credit that you never actually have to pay for. This is not the case. When the market was buoyant, it was possible to transfer large balances to a new credit card account and take advantage of those “0% interest for a year” and free balance transfer deals. Those days are gone. The advertised incentives may look the same at first but under closer inspection, the introductory rates may last only a few months and uncapped fees for balance transfer can be extortionately high.
4. Stay on top of any changes to your credit card service. If you do find that the rate has changed or there are other fees being applied to your account that you’re not fully aware of, give your provider a call as soon as possible. In the event that they don’t attend to your concerns in a satisfactory manner, speak to a dedicated third party. A specialist debt advisor will be able to take you through your options and make suggestions on the best solution to suit your debt problem.
5. If you’re being charged fees for a credit card that’s surplus to requirements, cancel it. So, it’s not much of a trick but it is cunning in its simplicity. If you have an expensive card which carries a high annual fee, you might want to consider covering any outstanding debt on your other cards or taking out a debt consolidation loan. Again, a specialist debt advisor like Debtsolver will be able to take you through the process and help you decide if it’s the right debt solution for you.
6. Cancelling a card can affect your credit rating so you may want to consider keeping it but not using it. It might be necessary to keep the account open by using it once a month, so just buy something cheap and make sure you pay off the balance. Using the card infrequently like this could be enough to keep the card company from cutting your credit limit or closing the card altogether. Keeping the card account open protects your credit score, too.
7. Shop around. Not just for cheaper cards but for other solutions to the problem of spiralling unsecured debt. It can be very helpful to have the support of a specialist debt advisor who has the experience to take you through the range of debt solutions on the market and make a recommendation based on your individual circumstances. Debtsolver are on hand to offer debt help to anyone in financial difficulty.
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