Knowing how to manage family finances is important especially budgeting. If you have no limitations on your family expenses, you might end up having more unpaid debts. Many people are now using credit cards instead of having cash on hand for security reasons. Credit cards help us in purchasing items, especially for online transactions. If we don’t have enough cash on hand, we can use our credit cards to buy things we want since many stores right now are accepting credit card payments.
The problem is a credit card is still a liability that you need to pay at least the minimum required monthly payment for you not to incur charges. What you are going to do then for you to manage family finances especially when you and your family members have credit card debt?
When you have credit card debt, you must be mindful of the due date for you not to miss the monthly payment. If a financial crisis arises and you cannot afford to pay at least the minimum, customer agents of the credit card company will call you and ask for your payment. I worked in an outsourcing company before and our main job was to call credit cardholders who had past due or delinquent credit card accounts.
Some would ask for an extension of their payments and some would ask to waive the late fees and finance charges. Credit card companies offer some programs like skip a monthly payment for valued customers and others have the discretion to waive those late charges incurred. But what would be the best way to manage credit card debt?
Limit Your Spending Habit
Having a credit card is so tempting especially when you shop in a mall or even in an online shopping mobile application. You are always tempted to buy those things you want even if you don’t need those kinds of stuff at the moment. Put limitations on your spending habit and prioritize needs first over wants. Always remember, you still need to pay it on or before the due date even if you purchase that particular item using a credit card. Prioritize the basic needs of your family and much better to pay cash rather than using a credit card.
Please avoid using credit cards if possible. The worst scenario is if you cannot manage your credit card debt for how many months, a collection agency who acts as third party agent between the cardholders and credit card company, might always call you and if you failed to settle with them your credit rating might get affected. So please be wise on using your credit card.