Priority Plus Financial on Why Credit Card Debt is Difficult to Pay Down
If there is anything in the world that is very difficult to finish but very easy to start with, it has to be credit card debts.
Because they are now easy to get and use, people find it tempting to use credit cards for buying things that are needed. This is costly because today, credit card interest rates are higher than ever. In fact, a recent article stated that people are afraid to check their credit card statements because they just might faint once they get an idea how much money they owe to credit card companies.
Since everyone knows that owning a credit card can be costly, there is also a demand for financial knowledge. Particularly with keeping credit card debt low. Priority Plus Financial receives so many inquiries and questions regarding how to lower or remove credit card debt, but there are only a few handful ones who gain the knowledge and put it into practice!
Why is it so difficult to pay down credit card debt? Here are some ideas that can help anyone who is struggling with credit card debt:
Some are Clueless on How Credit Card Interests Work - Around 80 to 90 percent of people who own credit cards and have huge credit card debts are guilty of this. The same people will keep on spending, not realizing that their credit card debt is racking up. Credit card interest rates are often traps that will make a person keep on spending their credit cards because on paper, they appear harmless.
However, the moment the credit card bill is handed to these people, they’ll be the first ones shouting expletives at the credit card company.
Some keep using the Credit Cards for Necessary Purchases - Because of the COVID pandemic, online shopping and online purchases have gone off the roof. Literally everyone is now into online shopping. Which includes necessary purchases and payments, like groceries and utility bills. This is often due to lack of funds or simply because of the convenience in swiping away your credit cards for buying stuff online!
Some are paying the minimum amount for credit card debt - The worst thing a credit card owner can do when repaying credit card debt is to pay at its minimum amount. Paying the most minimum amount will do little to almost nothing in lowering down one’s credit card debt. Thanks to rising inflation and interest rates and an economy that is not looking too good for now due to the pandemic, paying the bare minimum amount is not doing anyone any favors in lowering down credit card debt.
Some are not responsible with credit cards - It's a common story for people who lose to the temptation of using credit cards to go completely bankrupt. These are also the same people who keep on buying stuff that they do not really need. To lower down credit card debt, one must also not rely on those little plastic things in buying anything.
And if one has a terrible addiction to compulsive buying, a good idea would be to put some masking tape on the card itself. This will prevent one from using the credit card!
Originally published at https://priorityplusfinancial.blogspot.com on September 6, 2022.
