Ravi Chandran
With unemployment among graduates rising and with credit card companies being more stringent with new credit, and holding credit limits, many may find themselves in a financial fix after maxing out their credit cards.
By: Hitesh Khan/
For some, it can happen suddenly; for others, being maxing credit cards comes about more slowly.Regardless of how you arrived to your maxed-out circumstances, it’s important to have a plan to get out of them. In this case, the best thing to do first may be to figure out what you shouldn’t do.
1. When you are in a financial fix, don’t miss any payments or make any late payments even if you’re maxing credit cards.
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When times are tough, even a minimum payment on a couple of credit cards can seem like too much, especially when there are stacks of other bills to be paid. Still, it’s vital to pay all your bills — not just your credit cards — because if you fail to make the minimum payment by the due date on any bill, that can have a domino effect on your overall credit, raising interest rates and increasing your minimum payments going forward.
2. Get a payday loan only if absolutely necessary. Payday loans are just about the worst type of available credit because borrowers are saddled with high interest rates at a time when they’re already in a financial fix and struggling to make ends meet by maxing credit cards. With these high levels of interest, a $200 payday loan will grow to a $1,000 balance within a year, and also, you are using next month’s paycheck to pay back last month’s loan, so when the next month comes around, you have the same problem, plus you have to pay the interest.
You may need a personal loan for a number of reasons — perhaps to deal with unexpected medical expenses, to consolidate high-interest credit card debt, to expand your business, or even to take that well-deserved vacation. Unfortunately, if you have borderline or bad credit, personal loans may be difficult to get at most banks.
Nobody wants to pay a higher interest rate than he or she has to, so consider the purpose of your loan before applying. Is it for debts or upcoming expenses that require immediate attention, or can the loan wait until you have an opportunity to build up your credit score and receive a better rate?
Only you can answer that question, but at least be sure to ask the question before you rush into getting payday loans.
“Bad credit” does not necessarily mean “no credit.” You have alternatives, but be sure to check them out thoroughly. Review the terms to make sure that you understand all the fees and potential charges, and calculate the total amount of money you will pay over the life of the loan. Choose poorly, and you could be caught in a seemingly endless debt cycle. Choose wisely, and you could be on your way to improving your financial position while rebuilding your credit.
3. If you’re in a financial fix and maxing credit cards, don’t buy new stuff. With Carousell, Amazon, thrift shops, garage sales and even exchanges with friends and neighbors, there is often no need to buy items that are brand new. If you really need something, any of the above are good options, as is Facebook Marketplace.
Bartering is another option to access goods and services without laying out cash or taking on more debt. You can barter your skills or trade with someone else for access to their skills. For instance, a hairdresser could trade haircuts for accounting services or a contractor could barter remodeling a bathroom for a new website with a Web designer. MatchTrade is such an app which will help you to trade unwished things easily and fast. You will do it not for money but for goods you want to have. You can barter not only thing you don’t use anymore but your free time and skills as well.
4. Don’t go it alone. In tough times, relying on your relatives and friends for moral support can make a big difference. Getting together with friends or relatives over a potluck dinner or coffee pot can save money that would otherwise be spent on expensive dinners.
5. Don’t cut out all the extras. When you’re in financial trouble, cutting out all the extras may bring your spending in line with your income, but it is also a surefire way to torpedo any budgeting or spending plan. You should start by tracking expenses, writing down everything that you are spending for two weeks to a month because that will give you a clear picture of what you are spending.
How to Secure Personal Loans Quickly
If you are in a financial fix and are searching if personal loans useful to expand your business, the loan consultants at can set you up on a path that can get you a it in a quick and seamless manner. Good loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. You should also find out about money saving tips.
Good Affordability Tools can also help you make good loan decisions. Calculators can help you ascertain the best interest rates for your loans in Singapore.
In the same manner, if you are looking for a new home loan or to refinance, mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us for your business expansion needs.
