Fixing up credit card debts


Using credit cardsactually proves out to be very advantageous in many ways. It helps one in booking high rated tickets, make high expenses, have things sorted out while suffering from financial crisis, pay for sudden medical bills and other damages when one do not have cash or saving in the bank account and most advantageously it allows one to move tension free without having a pad of money, just one plastic card weighs light and one is not worried about being robbed by burglars. But, it is a fact that if there are advantages, there are disadvantages too. In case one does not take care about the expenses, do not give it a second thought about the outstanding bills of the credit card and keeps on swapping the card without calculating every now and then, does not care to pay the past bills and does not keep a track on the use of the card and the amount then one might end up in to a big hassle as the card limit expired.

Banks to keep alarming their credit card holders about the pending bills and excessive usage but then in case the attention is not paid at the right place on the right time then things can really go wrong with the account holder. One must know that there are no such credit card providers who would work for the common people’s profit and suffer a loss itself. The world is cruel enough to first ensure self-benefits and then attract the customers in such sarcastic ways that they actually ends up losing while they feel they are gaining something.

Specially, the cash back and card points plans are designed and explained in such a fancy way that it seems to be quiet profitable to the customers but then if calculated correctly one can get to the conclusion of who is actually receiving the profit and who is suffering a loss. This anyhow does not eliminate the idea of using credit cards. One must keep a credit card and use it when required but getting fascinated by the offers is something that one must first calculate and then take the right decision. The excessive use of credit cards eventually leads to credit card debts and here are the two ways for how to get out of credit card debt.

Snowballing method- it is the method in which the debtor must arrange or make a list of all the pending bills in the increasing order of their interest rates. Then one can start with the one that has the lowest interest rate in it and first pay off that bill. This method actually helps in getting some extra amount after every bill is sorted that can be used to pay the nest big amount.

Debt stacking- it is the reverse snowballing method where a person first deals with the highest interest rated bill and then pays the rest in descending order. It actually ends up saving a lot of money after the debts are paid.