What to Do to Your Credit Card Debt

Credit card is a magic card which is made by plastic token (ha!). Just kidding, the writer really wants credit card to be a magic card which can buy anything, though. But unfortunately, it is limited based on a variety of factors ranging from an individual's ability to make interest payments, or an organization's cash-flow and/or ability to repay the credit card debt¹. It simply means the limit of the credit card will be based on our ability to pay back the debt after we use the credit card.

In spite of how convenient it is to use credit card when we go for shopping, there is risk we need to consider. The risk of falling into debt, when there are unexpected expenses that makes it impossible for us to pay credit card bills, is the worst case we need to avoid. The trick to avoid that kind of situation to happen, is to keep our credit card expense below 20% of our monthly income! Whew. (It always feels relieving after spitting out the most important stuff of a writing.) But really, that simple trick is important to remember, dear readers.

“But writerrrr.… what about when it’s inevitable situation, it’s really happening, or when it’s already been done?” The writer imagines a reader asked. “Well, poor you.” Hahaha. Just kidding. Alright, first thing first, you don’t want to dig yourself out of a hole by running away from the debt then think like you can put the problem in a pigeon hole. No, you absolutely don’t want that. Why? Because it will ruin your credit report! Next is your whole history of life! (OK, that last one is too much.) What the writer means, it’s that you shouldn’t do it because you will be charged by late payment fees month by month.

What’s worse than being charged when you pay your CC bills late are the creditors will give a bad mark on your credit report after second time you’re late to pay, and the most annoying thing, the interest rate will go up. After you realized running away is bad, the next thing to do is to call the creditor’s company. Let them know why you pay late. “Is there any possibility of being reported if I pay late?” Well, maybe yes maybe no. The writer means, what’s more of practical knowledge the normal first-year college student – whose money solely given by her parents – know about credit card? Ha. But don’t that question gets to you, dear readers. This blog is quite reliable since even though the writer’s still an amateur in financial matters, the writer is quite a passionate learner, not to say an above-average teacher (what?). 

Anyways, you can check complete information about What-If-I-Don’t-Pay-My-Credit-Card-Bills stuff at http://lifehacker.com/what-happens-over-time-if-you-dont-pay-your-credit-car-1424115120. Hope that will help you. Want to check more about APR, Grace Period, Annual Fee, and Transaction Fee of Credit Card? Check out:

http://yaplinapau97.blogspot.co.id/2016/04/lets-say-hi-to-credit-card.html

Best of Luck!

Source:

¹https://en.wikipedia.org/wiki/Credit_limit

http://lifehacker.com/what-happens-over-time-if-you-dont-pay-your-credit-car-1424115120.