Credit Card Trap?

Question

I am very much fed with the credit cards,how can i free from this,for 5000 Dhs card now it is more than 10,000/- I want to close this all ,really it is a trap.

Answer 1

Nasar,

Closing the credit card will not give you the result you want. The problem isn't the credit card, but the way you've been using it. I have credit cards but I am aware of how much I can afford every payment period and so I don't go on spending more than what I can afford every month. Money I don't have in the bank, I don't spend. I hate paying interests, and so if I don't have enough money I wait until I save enough.

Credit cards don't make money out of people like myself who always pay on time and in full, but out of people, who like you, don't restrain themselves when spending money they don't have.

Therefore, I suggest that you don't close your credit card, unless you cannot control your spending habits. Instead I would suggest that you leave the credit card at home, and pay it. Make a plan on how you will be able to afford monthly payments. If you can only afford $500, you know that this money will go to pay the monthly interests and then the principal ($10000). So once you know how much you pay on interest, then you will be able to plan it and see how many months (years) will take you to pay the whole amount.

This will teach you to think long term and make you doubt next time you go shopping things you cannot afford. It will also prepare you for later in life as you will be better qualified to handle your finances.

You don't say how much are you being charged on interests.

Call your credit card company and ask them if they can lower your interests. If the person who answers says no, ask to speak to a manager. If this doesn't work, then check your other credit cards and find out wich one offers you the lowest interest rate, and make a balance transfer.

Be responsible and make your payments if you don't want to mess up your credit report and score because if you fail to pay, this will stay for 7 years in your records and next time you need credit your interests will go higher because lenders will see you as high risk.

Remember that the trap is set for those who don't know better, and cannot control themselves. You are smart, so don't fall in traps you already know are there. Learn from your mistakes so you can avoid them next time.

Hope this helps.

Answer 2

If you close it make sure it is closed... Some companies will say they closed the account when they didn't and you will accrue interest.. Also if this a Capital or Bank One card you will be charged interest even after the account is closed which is illegal

Answer 3

For a 5k Dhs limit credit card, if you have 6k in hand you can get rid of this.... approach the collection department tell them there is no way you can pay 10K Dhs and would like to close the A/C.

They will ask you to settel the outstanding.....5.5K as lumpsum to close the A/C...they will not agree offer them 6K as your final offer and they will accept the payment and close down your A/C.

Make sure you get everything in written, and after paying the amount make sure you get a clearance certificate from the bank or credit card company stating that you dont owe them anything on that particular card A/C.

Am into cards operations for more than a decade...i know it will work.

Best of luck....