Seven simple rules to save money, minimize credit card debt, and eliminate credit card stress. When the monthly credit card bill has been paid and the remaining debt becomes visible, many people become stressed again. How do you avoid the high debt over which you seemingly have no control? And how do you pay this off?
1. Limit Use
The first rule is that the credit card may no longer be used, except in certain situations. Put the card away well so that it takes effort to get it. The card may only be used for emergencies and holidays. And on holidays, the rule is that the card may only be used in case of emergency.
2. Have 1 Credit Card
The second rule is that 1 credit card is more than enough. Make sure that the second and possibly third cards are redeemed and canceled as quickly as possible. In addition, reduce the credit limit to the lowest possible variant. Often that is 1,500. This is more than sufficient in an emergency.
3. Automatic Payment
Make sure that the automatic payment runs smoothly every month. Set the automatic payment so that at least the minimum amount is repaid plus ten or twenty euros. Spending more than you can is not possible, but paying off a little extra on the minimum amount ensures that the debt disappears faster.
4. Additional Repayments
The third rule says that you must pay off the minimum and something extra. This fourth rule goes one step further. This concerns a significant additional repayment. Place a piggy bank somewhere in the house and put the remaining money from all wallets in it every week, at the end of the week. At the end of the month you deposit this into your bank account to pay off the credit card debt. Every little bit helps. Moreover, this method especially helps to reduce stress levels.
5. Extra Savings
By saving extra, more can be paid off the debt. For example, take your own bread to work, buy fewer snacks, cook more yourself instead of having it delivered or eating out. You reserve the money that remains for paying off your credit card debt. If you do this for a while you will notice that you can save a lot of money.
6. Banking matters
The sixth rule deals with fixed habits. The piggy bank in which a lot of money is slowly accumulating must be periodically taken to the bank. The purpose of the bank visit is to pay off the credit card debt. For example, do this once a month on a Monday morning. Make this a regular habit. As bank visits increase, the debt decreases.
7. Credit Card Offers
Call centers regularly call with the most fantastic credit card offers, often in a combination package of a debit card and a credit card. Under no circumstances should you respond to this. Decline all offers. The goal of the (telephone) seller is to make money from the product that is offered. By following these rules, your credit card debt will decrease. The rules also apply to overdrafts at the bank. Then ensure that the overdraft limit is lifted. Never spend more than you bring in each month!