Be Free from Credit Card Debt – Licensed Money Lender Tips

Be Free from Credit Card Debt- Licensed Money Lender Tips

There are over 7 million credit card owners in Singapore. And clearly, credit cards continue to enslave millions of Singaporeans everyday with a total of more than S$27.9 million total credit card debt last March 2018.

So to rescue you and to avoid being part of those who are drowning and getting bankrupt because of credit card debt, here is the ultimate guide on how to handle your credit card:

  1. Check your current balance and interest rates

The first step is to face your fears. The numbers might overwhelm you or make you faint, but that is the truth. So you need to get your billing statements and list down how much you owe from each credit card. Then take a deep breath and create a plan on how to repay them one by one. This will also reduce the stress and pressure you feel when paying.

  1. Ask for a credit report

To evaluate the overall amount of money you need to return, request for an updated and full credit report. It will show you your payment history, credit services, penalty fees for late payments, defaults and bankruptcy if there’s any. Check them thoroughly and if you see any error, report them to the credit bureau to correct them.

  1. Consult experts for a repayment plan

If the debt is huge already, it is best to ask for professional help than doing it on your own. Accountants lead you in writing a realistic debt repayment plan. You should pay credit cards licensed money lender with high interest first. Don’t forget to include penalties in the computation.

  1. Do not just pay the minimum amount

You might think you are doing okay when you meet the minimum payment. But the sad truth is, you are only paying for the interest which grows each time you fail to pay the full amount.

  1. Do not apply for a loan from another licensed moneylender to pay for credit card debt

This could be tempting especially when the pressure of piling debt gets into you. Most people tend to look for the easiest way out, and that is to loan a huge amount from banks and pay all credit card debt at once. This would result in a larger debt that can even cost you more like your house since banks ask for collaterals.

Licensed moneylender like credit card companies is there to help consumers. However, due to human nature to bite more than what they can chew, many Singaporeans are now living with the ghost of credit card debt following them. If you are one of them, you have to face the reality of your debt, evaluate it, ask for professionals to help you, and most of all, be patient in paying them. If you have more credit card tips, feel free to comment them below.

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