Explaining how Credit Card Debt

Many people complain and to avoid paying credit card debt. Instead do not want to pay, but other credit card debt is still outstanding. Where least, each have more than 1 credit card and usually has up to 3 credit cards.

Having a credit card is one of the many sources you will be facing a serious financial crisis. Interest rates up to 18% per annum is too high compared with personal loans is only about 6% a year!

Signs of a credit card owners who would be facing financial problems is when:

* Pay bills when using your credit card.
* Your credit card has reached its limit.
* Only pay the minimum each month.
* Billing outstanding credit card
* All expenses need to use credit cards daily.

So, how to solve msalah if you happen to yourself or has already occurred? Here are 5 ways you can do:

First way: Pay the debt of the most important comfort to families such as rental / installment house, fire / water, consumer goods and others.

Second Method: Compare interest rates between credit card. Usually it is around 12% - 18%. Pay credit card debt is a higher annual interest then followed with a credit card debt interest rates low.

The third way: Merge all credit card debts with the banks to make loans with a total ansurannya smaller and interest rates low. This way, you save money in terms of interest payments to the bank in addition to paying a smaller number of installments.

The fourth way: Using the method "play safe payment" amount of debt to be paid each month must not exceed 20% of total income. If your salary is RM2, 000, then you can only pay credit card debt is not more than RM400. If your credit card debt of more than RM400, ie RM600 per month, do count as below:

RM600 = RM400 divided 66% @ 67%

Credit card 1: RM200 per month x 66% = RM132
Credit card 2: RM100 per month x 66% = RM66
Credit card 3: RM300 per month x 67% = RM201

The amount you pay is RM399 @ RM400 no more than the total debt should you pay. This can prevent you from facing congestion at critical times because most money out to pay the debt only.

The fifth way: This is the final step of meeting with financial planning services or you can deal directly with AKPK (Counseling Agency Financial Management) for free!

It is expected that the above 5 ways you can help solve the credit card you are or may be facing.