only
man who sticks to you in adversity than a friend is a
creditor
-Author Unknown
My Mobile started ringing non stop during my meeting with a client , and finally after ten rings I was forced to pick up this call and from other end boomed a voice. without even wishing me ‘ Today is the last day to pay your credit card dues where should I send my collection agent boy ? : It wasn’t a friend calling .It was one of the six credit card companies I owed money to …they weren’t calling just to chat. Here was a Person From a credit card company who was specific in his talk was curt ,crisp and to the point .
I politely told him that I would be calling back and disconnected the phone and threw myself on a couch in frustration and started thinking .Where did I go wrong? I am a Engineering graduate has a decent job in MNC and dint go on a shopping Speer ,moreover at that time I dint have a car or took my family on vacation ,but still how had I gotten myself into this mess?
Few years back at one point in my life these type of calls were common and every time my phone rang I was hesitant to pick up and in the bargain many a times I have ignored my client,s call thinking that call might be of some credit card companies!
As I was introspecting everything unfolded and I know It all Started when I was working as a sales executive where Credit cards were easily available and these card companies were encouraging and desperately pushing cards to customers without bothering to look into financial status of their prospective clients, moreover it was easy to get credit card if you are working for an MNC and also It was common for a person to own 3-4 cards and more the card the better for his status!
coming back to my case when I stated using cards for official tour purpose I dint bother or rather it was irresponsible on my part that I never paid back to the credit card on time even though my company settled my official tour expense .Yes, I paid back the minimum amount but only occasionally and not every month when it was due . over a period of time the debt stated accumulating with added simple interest , compound interest ,late fee which finally resulted in financial mess. when situation started deteriorating hiding from Telephone, ,unopened credit card statement envelope became order of the day . I was unsure of how to help myself to come out of this uneasy situation as being in debt was unnerving and embarrassing. I felt like I couldn’t tell anyone,not even to my wife because I was ashamed .I had degree in engineering and worked for good company ,well read and if any one know better to manage things It was me and ironically I was into this kind of unbelievable situation
I thought how long this should go on ,Enough is enough , This is the time to come out of this mess .I sat up suddenly and was tired of pretending everything was okay while things got worse and I felt more and more hopeless. Now or never .I pulled together all credit cards statements I had left unopened from my office desk and sat down to figure out what I owed once for all and took a deep breath and stated to rip open the statement envelope..finally decided to face it head on come what may.
-Author Unknown
My Mobile started ringing non stop during my meeting with a client , and finally after ten rings I was forced to pick up this call and from other end boomed a voice. without even wishing me ‘ Today is the last day to pay your credit card dues where should I send my collection agent boy ? : It wasn’t a friend calling .It was one of the six credit card companies I owed money to …they weren’t calling just to chat. Here was a Person From a credit card company who was specific in his talk was curt ,crisp and to the point .
I politely told him that I would be calling back and disconnected the phone and threw myself on a couch in frustration and started thinking .Where did I go wrong? I am a Engineering graduate has a decent job in MNC and dint go on a shopping Speer ,moreover at that time I dint have a car or took my family on vacation ,but still how had I gotten myself into this mess?
Few years back at one point in my life these type of calls were common and every time my phone rang I was hesitant to pick up and in the bargain many a times I have ignored my client,s call thinking that call might be of some credit card companies!
As I was introspecting everything unfolded and I know It all Started when I was working as a sales executive where Credit cards were easily available and these card companies were encouraging and desperately pushing cards to customers without bothering to look into financial status of their prospective clients, moreover it was easy to get credit card if you are working for an MNC and also It was common for a person to own 3-4 cards and more the card the better for his status!
coming back to my case when I stated using cards for official tour purpose I dint bother or rather it was irresponsible on my part that I never paid back to the credit card on time even though my company settled my official tour expense .Yes, I paid back the minimum amount but only occasionally and not every month when it was due . over a period of time the debt stated accumulating with added simple interest , compound interest ,late fee which finally resulted in financial mess. when situation started deteriorating hiding from Telephone, ,unopened credit card statement envelope became order of the day . I was unsure of how to help myself to come out of this uneasy situation as being in debt was unnerving and embarrassing. I felt like I couldn’t tell anyone,not even to my wife because I was ashamed .I had degree in engineering and worked for good company ,well read and if any one know better to manage things It was me and ironically I was into this kind of unbelievable situation
I thought how long this should go on ,Enough is enough , This is the time to come out of this mess .I sat up suddenly and was tired of pretending everything was okay while things got worse and I felt more and more hopeless. Now or never .I pulled together all credit cards statements I had left unopened from my office desk and sat down to figure out what I owed once for all and took a deep breath and stated to rip open the statement envelope..finally decided to face it head on come what may.
When
I saw the numbers I almost cried ,I couldn’t believe I had
let it escalate to this point, but few minutes later stated
to think rationally. How to come out ?
First thing I did was that I approached a good Samaritan and explained him how I was sucked into this mess and shamelessly took loan at interest free from him who was kind enough to understand my plight and helped me to come out of this mess and also pulled all my other resources and planned Methodically to clear the credit card debt
First thing I did was that I approached a good Samaritan and explained him how I was sucked into this mess and shamelessly took loan at interest free from him who was kind enough to understand my plight and helped me to come out of this mess and also pulled all my other resources and planned Methodically to clear the credit card debt
Next thing I did was to approach a credit card debt management company who are professional in these kind of problem and thru them stated negotiating with the credit card companies and slowly stated clearing the debt .I am not going to pretend that it was easy ,In fact it was one of the hardest things I;d Ever done. yes It was hard at first but slowly it reached a stage where it was controllable,and closer I got to paying everything off ,the happier I felt .As the amount I owed shrank so did my stress, and when I paid off my last credit card ,two years after I decided to take control of my debt I felt reborn and finally it reached a stage where calls stopped completely from credit card companies .
Now after done so I still have debt but it is home loan and car loan which is manageable not calls from credit card companies and collection agents
Having said so there are few things on credit card which I would like to share Straight out of my experience
I have no ill feelings towards
credit cards, I believe It’s not the credit cards that create debt but truthfully,
it’s people and our unwise decisions that lead to credit card debt after all
one must make the decision to use the credit card before one can ever go into
debt .Credit cards are simply a financial tool, in my
opinion. If you use them wisely, they can provide convenience and other
benefits,but, if you use them unwisely, they can result in all sorts of
problems, as it proved in my case. Although, credit card companies offer a convenience that can be dangerous for
some people and they certainly don’t go out of their way in most cases to help
people manage spending wisely. (They love for you to spend!)
Managing credit card debt is a very important skill to master
considering credit cards are a pivotal part of our daily life. However, we must
use them wisely so as to avoid getting deeply in debt. Instead, we should try
to make the best out of the credit card system. Taking control over our credit
cards before they take control over should be our Mantra . Nonetheless, with discipline and perseverance, you can
learn to use your credit cards effectively other wise do not get credit card
Following 6 Golden tips about how
to use your credit card well will help you to manage your credit card [which I should have used ]
1) Read your contract in detail: double-check that you’re not paying for any services you’re not
interested in.
2) Don’t use more than 30% of your
line of credit: this will show creditors
you’re a responsible consumer who manages his credit card debt wisely. Instead
of borrowing all the money you can, you’re only using a small portion,
which, according to creditors, positions you as a reliable consumer.
3) Pay off your balance every month: you’ll avoid having to pay any interest. Also, your debt-to-credit
ratio will remain low and your debt will be under control.
4) Don’t go over your limit: avoid having to pay penalties, upset creditors, and enable your finances
to get out of hand.
5) Use your credit card as if it were
a short-term loan: before charging anything on
your credit card, remember that whatever you borrow needs to be paid back,
hopefully in full, every month. By following this tip you’ll make sure you’re
not borrowing more than what you can afford and, as a result, your credit card
debt will be manageable.
6) Don’t use a credit card to pay off
another one: the best way to pay off a loan
is by increasing your income and/or cutting down on your expenses, not by
borrowing more money. Otherwise, it’s a vicious circle. If you get a new loan
to pay off an old one, won’t you probably have to take another loan to pay off
the new one? Getting in debt doesn’t happen overnight. It’s typically a
process, so do everything you can to avoid falling into it.
Managing credit card debt can seem impossible to do if you’re going through financial straits. But don’t worry: most of the time there’s a way out of debt. Look into financial debt options that can help you put your finances back on track. If your debt is still manageable, try to follow the 6 tips previously mentioned to use your credit card well. I know it may not be easy, but trust me, in the long run, it’ll be worth the effort. And I have come out of this credit card mess and even you could if you are into
Managing credit card debt can seem impossible to do if you’re going through financial straits. But don’t worry: most of the time there’s a way out of debt. Look into financial debt options that can help you put your finances back on track. If your debt is still manageable, try to follow the 6 tips previously mentioned to use your credit card well. I know it may not be easy, but trust me, in the long run, it’ll be worth the effort. And I have come out of this credit card mess and even you could if you are into
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