“You've got the whole world in your hands, with Master Card in your hands.”
More than a decade back, Indians were exposed to the thrills and perils of credit cards and this was one of the very first advertisements promoting them. We have come a long way since then. Plastic money is almost as common as the “real” or the paper money in our country today. At least in the metros, plastic money is used quite a lot.
Every time you go to stores like Big Bazaar, there will be so many executives from the bank wanting to woo you into getting a card. If you already have one, they’ll tell you the virtues of getting another one! Day in and day out, credit card companies hound the hell out of unsuspecting people by calling them to sell their plastic cards. Who cares if you are in a meeting! But all said and done, plastic money is here to stay. And if you are careful with it, it can really be quite useful. But if you are not the careful kind, you are on your way to financial mess. Congratulations!!!
What Is Credit Card Debt?
Everyone who uses a credit card knows what credit card debt is. It’s the money that you have spent using your card, and that you have to pay back to the credit card company in your next billing cycle. So what’s the big deal? The big deal, my dear ladies, is that often people get stuck in so much debt that it becomes unmanageable and difficult to pay off.
The debt cycle starts when in a particular month you spend more than you can pay off when the bill arrives. When you are unable to pay off the whole amount, the company levies an interest on the unpaid amount. And mind you, this is not an ordinary interest. Most credit card companies charge a huge interest. This means that your next bill may be even more difficult to pay off, especially if you have done more spending. A couple of cycles in this pattern, and you find yourself stuck in credit card debt.
Are You Stuck In Credit Card Debt?
Here are some pointers that will help you decide if you are…
• Have you been making minimum payments only for a couple of months?
• Did you or your spouse get a credit card to pay off the debt on the one you already had?
• Are there multiple cards in your family?
• Have you exhausted or are close to exhausting the credit limit on your card?
• Do you dump the credit card statements in your drawer without opening them?
• Is the tension and stress of being in debt affecting the peace and joy in your life and relationships?
If you have answered “yes” to most of the questions here, you are stuck in the quagmire of credit card debt. It’s high time that you realized that, sat up and took notice of things. Fikar not yaar! We, at Memsaab, are committed to help you in dealing with all your problems. So just hang in there while we get together some useful tips on how to get out of this financial mess. Do read our next in the series. Till then, be cheerful and curb the spending.