March 4, 2020
by Addison Davies
Slide your hand into a rear pocket to take out a credit card and swipe it to make a purchase. It sounds so easy. But it as quickly drains money out of your pocket as you pluck it out of your wallet. Although they seem to be very easy to make a purchase when you do not have access to cash, they are notorious for racking up debt.
The lending industry has evolved tremendously over the years. Financing your needs has become more comfortable now. You need to put in the application form online, and you get funds the same day without embroiling yourself into formalities. Even people with bad credit can borrow money during emergencies.
Credit cards make it even far more straightforward. As long as you have your credit card limit, you can swipe it on your own, but here is when you slip up. Most of the time, you find it dangerous trouble to pay off all credit card bills. In this situation, you feel like cutting up your credit card. If you never use them again, you will not build debt.
Can this be the right way? Is it practically possible?
The fact is your financial health is as much about how you use borrowed funds as it is about how you refrain. When you take out a loan, a lender will analyze your creditworthiness. How will you prove it if you never take out a loan? With credit card usage, you can determine that you timely pay off the bill.
Cutting up credit cards is not a solution at all to escape debt, so what should you do?
One of the significant reasons for ridiculously high credit card bills is you fall prey to the temptation of using them. As you see anything unusual in a shopping mall, you immediately take out your card to make a purchase.
The best approach to deal with this temptation is to stop keeping it in your wallet. Just hide it somewhere that is not handy. You will not be tempted to use it while shopping.
1- Make sure that you delete credit card information from your cellphone or email draft.
2- Keep the card inside a plastic bag and bury it under a pile of things.
If you put your credit card at a place where it is quite challenging to access it, you can avoid using it for regular expenses. It will help if you make a habit of keeping cash in your wallet instead. Money keeps you from overspending.
What to do if you want to finance
If you have maxed out your credit cards or it has become impossible to further financing your needs because your credit card providing company has closed all your accounts, you can contact a third-party financier. Such financiers may be retail establishments that lend money to bad credit borrowers.
Such companies do not run a credit check, and hence the borrowing does not need to be restricted. However, make sure that you pay off the debt on time. Your payment record will be reported to credit reference agencies. If you make all payments on time, your credit score will go up, making it easy for you to apply for short-term funding options such as quick loans at affordable interest rates.
If you want to rebuild your credit rating, you should consider applying for a secured credit card. As the name suggests, you will have to put collateral. Secured credit cards charge lower interest rates because of security that your lender can liquidate if you fail to pay back the money. Your default will not only cost you the collateral but also your credit score.
The best way to use these credit cards is to swipe them at a grocery store or a retail store. Make sure that you pay off the dues within time.
Be honest with you
Rebuilding your credit rating and learning a sensible way to your credit card is not enough to get your financial life on track. You will also have to find out the reasons why you got into this mess. Try to admit your mistakes and not repeat them in the future.
Bad credit is not a severe problem as it seems. You can improve your credit if you take stock of your financial habits and analyze where you slipped up. You should use credit cards only when you need money urgently or in case you need a large amount of money, and you should seek unsecured personal loans in Ireland.