Debt Management 101 ~ Pinoy Reviews

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Wednesday, July 16, 2008

Debt Management 101

I have been sent yet another local credit card just this morning. I didn't even apply for any credit cards and yet they have sent me one. I guess local credit card companies are taking a page from US credit card issuers and they're now just sending out indiscriminately credit cards even though the recipient never applied for one. Anyways, I already have too many credit cards on my wallet. I guess companies keep offering me credit cards and loans because of my credit standing. Here are a few tips so you can be successful on your own Debt Management.

Always pay on time. Contrary to what most people think, that one day of delay is already a blemish on your credit reputation.

Keep track of your due dates. In order for you to be able to pay your bills on time, you should always keep track of your due dates. Set an alarm on your phone to remind yourself that you need to pay a certain bill on this day.

Rank your debts according to which is more onerous. Rank your debts according to which one is more burdensome to you, ie, which one has higher interest rates, etc. If you can't pay your debts at the same time, then see to it that you pay the ones which charge the more interest rates since the longer that these debts remain unpaid, the higher your interests will be and the longer it will take for you to pay it.

Restructure your loans. Some credit card companies, when they think that there's really no chance that you will be able to pay all the amount due and you've been paying them interests for who knows how long, is kind enough to allow you to restructure your loan. They will cut your credit card and them set up a payment scheme so that you can pay the total outstanding amount.

1 Comment:

debt consolidation said...

There are various financial services in the market that offer credit card debt management for people who are not able to manage their multiple credit card debts. Hopefully people can find the help they need to eliminate debt. Thanks for the info!