Things you must know regarding Credit Card Debt
Things you must know regarding Credit Card Debt: What happens when credit card balance is not paid for two or more years? It comes as no surprise to state that credit cards are a huge convenience. They have made lives easier for just about everyone and continue to do so every day.
What you should know regarding credit card debt!
While credit cards do facilitate us in a major way, there are some things that we should always keep in mind:
- You don’t have to owe!
It might seem as if the whole point of a credit card is the principal of acquiring a kind of loan without handling the formalities of one. But what you need to understand is that it is not necessary to owe an amount on the card. You can just as easily use it and avail the advantages it offers, after which you can just as easily pay off the amount due and stay debt free!
2. Recognize when short term loans make sense
Some amounts and loans are smarter if repaid in the smaller time frame. Try to opt for only those loans which will benefit if repaid in the short term. These are the ones that would accumulate larger amounts of interest if repaid stretched over more time.
- Always remember: owing is easy, repaying is hard!
Well this is something every one of us who has shopped, understands. How easy is it to keep adding items to cart and collecting a large number of items, some of which we don’t even need? It is even easier to do so with a credit card, where the amount does not immediately go out of our account. When shopping be mindful of what is a need and what is a want. Try not to overspend, as in the end you will have to repay it.
- A repayment plan
When you spend money, you should have something in mind as to how you will repay it. If you’re spending extra one month, make sure you don’t spend extra the next.
- You can’t go be arrested and imprisoned for non-payment, but…
What happens when credit card balance is not paid for two or more years? Well, why wait to find out? Accumulating unpaid balances on credit cards lowers the overall credit rating and the creditor can also sue you!
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