Fans of the popular sitcom How I Met Your Mother may relate with supporting character Lily Aldrin. Played by Alyson Hannigan, Lily is a kindergarten teacher and struggling art consultant who has the tendency to buy so many things on impulse, all of them by credit card. It is revealed that she has kept so many credit cards that are more or less maxed out, it even affects a plan to take out a mortgage for buying a new apartment—the mortgage was approved with an 18% interest when her husband, Marshall Eriksen, was aiming for 6%.
Reel life may not be as idyllic as real life, but the threat of not being able to take out a loan in the future because of delinquent accounts is very real. So is a warrant of arrest put out on you because you failed to answer summons for a credit card company suing you, or having your purchases repossessed. Before such situations arise, you must seek help from a financial adviser specializing in credit card debt solutions.
Collect the most recent card statements and arrange them according to their interest rates. Settle accounts that have the higher interests first and make them full payments if you can spare the cash. This will help you have an easier time resolving the other, low-interest cards. You will have to shun any rewards program incentives that card providers are known to offer. To ensure that you will not fall to temptation, cut up the card and try paying for your future purchases with cash.
It is possible as well to transfer all your credit card debts into another card that has a much lower interest rate. However, you must plan ahead to settle as much before the introductory period is over. The card provider may not even allow sheltering of all the transferred debts.
A Toronto debt support company can help you with some options on debt restructuring. This allows you to put in all your existing arrears into a single account you can pay off. A trustee can assist with dividing up the payments for creditors.
Credit cards are indeed helpful when it comes to your purchases. However, it is financial suicide if you become careless and form a habit of not settling the bills. To learn more, check out business.time.com/2012/01/24/6-steps-to-settling-your-debts-for-less-than-you-owe/slide/arm-yourself-with-knowledge/.
Credit Card Debt Solutions: Getting out of the Plastic Rut