Using a credit card to work up a huge debt is probably the easiest thing a young adult can
do. Reasons unknown, all of us feel more comfortable handling a credit card than
High credit card debt results in heavy and perpetual losses until the debt is nullified,
because the interest rates on credit card debt are unusually higher than normal loans. One
ends up losing more money paying interests than that has been spent, not to mention the
repercussions on credit rating when one fails to meet up with the payments. These debt
traps can actually be used for your benefit if you follow a little prudence and the
Keeping in mind the interest rates transfer you balances to the lowest rate card where you
might get a 0% or lowest possible rate or some period of time. During this period you can
attack your other debts that are attracting heavy interest. Be prepared and keep track of
other balance transfer offers and get ready to repeat the process towards the end of the
period on the first offer. If you don’t find one, pay off as much as you can to reduce
burden. Due to intense competitiveness of the credit card industry, you will always find
0% offers on the market. Always remember, the debt still exists.
Another useful and efficient tool to reduce your credit card burden is a debt consolidation
loan. These loans carry far lower rates of interest compared to credit cards. You can take
a debt consolidation loan at a lower rate and do away with all the debt, only make sure
your repayments are on time so that you credit rating does not take any more beating.
Another way of reducing credit card debt is to exercise self restraint. This is easier to
preach than to do, but the only practical way out of this is to slice up your cards, so that
there is no induction to spend unless you have extra money.