Debt management of credit is the most crucial kind
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Managing a credit card is one lesson that needs to be taught right from high school. The rate of people in credit card debt continues to rise, what with the more enticing credit card offers that are being made by all banks every other day. Credit card debt can be of various levels, one unbelievable tactic that I have heard people doing is taking a new credit card to pay for the old credit card debts.
What happens is often the fine print of the contract with the bank or Credit Card Company is not read. This spells danger and disaster to any financial situation. Before even thinking of paying off credit card debt it is important to sit down and calculate how much exactly do you owe to the credit card companies and how many credit cards you dealing with? Once you have the total amount due, it is then critical to look at how much money you have available to pay to towards this debt? This depends on the creditor terms and the age of the debt. It is more logical to asses if you should pay the higher interest charging companies first as these will only increase more with time or whether to pay the lower interest charging companies that have very aged debts first.
The debt management payments can then be organised into lump sum payments to the creditors or stretched repayments over a longer period of time. Figure out if it is possible to pay one large amount as a down payment first and then follow with other payments, this may seem more ideal to the creditor. Some credit card companies will only agree to close the account once you have made the final payment. This will mean even if you are not using the card, they are still charging you interest rates and late fee payments rates irrespective.