close
Advertisement

5 Ways to Escape the Credit Card Debt Trap

Credit card companies make profits on a simple fact of human nature: we buy today and worry about how to pay for it tomorrow.

Advertisement

Feeling the pinch towards the end of the year and want to start 2017 with a clean slate? Here are some suggestions.

  1. Start a piggy bank Go old-school! Save up for purchases instead of buying on impulse. ?
  2. Only use one credit card The more cards you have, the more you’ll be tempted to carry a larger balance and take on unwanted debt.
  3. Pay the highest interest rate first If possible pay off your credit card bills and card balance in full each month. Or pay as much as you can afford above the mandatory payments on the highest interest rate card first. Set up a direct debit for minimum payments to avoid late fees or transfer your balance to a new 0% interest credit card for a limited time.
  4. Spend less than you earn Cut back on unnecessary expenses and use what you already have before buying new things. Create a self-imposed ‘spending freeze’ for a few months. Take your credit card out of your wallet and only use physical cash for a month.
  5. Don’t spend ?‘imaginary money’ Avoid spending any money you haven’t yet earned and lower your credit card limit to help avoid temptation. Financial experts suggest keeping records, making a budget and sticking to it. If you have more than one card then close off each credit card as you pay it off.


Advertisement

More in Money

You’re wasting your money if you’re buying these 14 things in brand-new condition

You’re wasting your money if you’re buying these 13 things in brand-new condition

Used items can be the same great quality at a fraction of the price.
Building a happy retirement

Building a happy retirement

Viewing retirement as being a time of endless opportunity is the first step, says retirement expert David Kennedy. And if you're looking to start a business but think you're too old – think again: experience, networks and resilience are just three valuable qualities you can bring to the entrepreneurial world, writes Danielle McCarthy.

13 Things You Should Know About Negotiating

If everything is negotiable, here’s how to get the best outcome.
Will we still need cash in the future?

Will we still need cash in the future?

Is it possible to leave home without any cash? We take a look at some of the cashless options available in Singapore and Malaysia
5 ways to cut your energy and water bills

5 ways to cut your energy and water bills

Just a few simple adjustments can help keep your bills in check
Advertisement