Methods to dissolve Credit Card debts

Attractivness of Credit Cards

The beauty of owning credit cards is the perceived value of high income per se. In order to get hold of the first card from mega banks, there is a strict set of criteria to be fulfilled and brings out much discussions in the world of credits. Bulge bracket banks do tie-ups with retailers from time to time, giving promotions, discounts and incentives to new signups and value-added services to existing customer as rewards to loyalty. At times, credit card companies offer irresistable deals like holiday travel packages, fine-dining promotional rates and even vouchers that can instantly buy necessities without forking out cash! Who is to say "I don't want this hot deal"? To make things even more lucrative, signing up is made available online or through hotlines and best of all, free of charge!

Eliminate high Cost of Borrowings

There are risks associated to leveraging on future cash in light of using monthly cash flow to repay the debts on time else facing penalties imposed. A typical credit card has credit limits of up to 4 times the monthly revenue which makes thr borrower hard to pay up due to the shortfall in wages. Firstly, clear off any high-rolling debts such as car loans and mortgages. These are the ones that raise interest rates exponentially as well as detrimenting one's financial healthy. While others argue that credit cards allow them to free up cash flow, being unable to repay is another story should the credit limits burst and left with little savings to sustain. Mandatory debts can be resolved if the current expenses don't carry heavy indulgence or insanely sky high repayments.

Cash is King

Yes, this is a conventional way of being debt free! If an individual doesn't have discipline to save up or possess the ability to pay, why not use Cash? This will eliminate future problems and repercussions in the sense that there is no one but yourself to be accountable for when it comes to managing finances. Statistics have shown that those who only rely on cash payments often missed out better deals but lead a financially healthy lifestyle that propogates him faster to the path of freedom. Of course, not many folks are able to do so as housing needs and necessities had taken up quite a significant portion of savings. Hence, this is why compulsory act of savings and prudent cash management are the keys for survival. Needless to hold extraordinary cash and assets, just obtain a few diversified streams of income to fund monthly expenses will suffice.

Stick to Debit cards

Why are debtors unable to finance massive piles of credits from various aspects such as credit cards, mortgage installments or even basic shoppings? This is mainly due to the lack of discipline in handling finances that are way more than what they are worth. Research studies have proven that those who manage their current lifestyle tend to steer clear of any cards linked to drawing more cash. Why is that so? This is because they knew their limits well and certainly won't overstretch under any circumstances. Stick to debt cards instead! The purpose of debit cards is to directly deduct any payments made to finance purchases on a day to day basis. In this way, users won't need to borrow any cash or undergo the hassles in making credit payments to banks when the time is up. Leverage on your own cash today!