Most credit card users assume that credit cards are a source of additional funds to meet their daily needs. No wonder that many credit card users are entangled in large amounts of debt. To avoid new debt, some credit card users choose to cut out their credit cards.
The term “cutting” is synonymous with closing a credit card. The procedure can be said to be quite easy, the same as when making a credit card. However, cutting up a credit card must be based on a number of considerations before causing regret later. What are the considerations? Check out the following explanation:
1. Pay attention to financial conditions
First of all, consider your current financial condition to find out whether your finances are still good or beyond help. If your financial condition is still good, try to manage it to be even better to avoid financial depravity due to long-term use of credit cards.
If your financial condition is beyond help, it would be better if you cut up credit cards as soon as possible to avoid uncontrolled use in the future.
Take the time to calculate the total income each month, then compare it with total expenses to know exactly what the current financial conditions are. If you already know, you know what to do going forward for the sake of current and future financial goodness.
2. Offers given by banks
It is legitimate to cut a credit card if the offer given by the bank is different from the original offer or seems to harm you as a credit card user. For example, discounts are increasingly limited, cooperation between merchants is less, and so forth. Moreover, the main purpose of using a credit card is not only to facilitate transactions, but to enjoy a variety of attractive offers that can be financially beneficial.
Before cutting up credit cards, observe the offers given by banks over the past few months to find out whether there are changes to the offer. If the offer changes and seems to be profitable, it’s better to keep your credit card. If the opposite happens, please cut up your credit card so that you don’t lose money for a longer time.
3. Bank interest rate policy
What about current bank interest rates? Did it change or stay the same as when you first applied for a credit card? If bank interest rates often change, especially in significant percentages, it is better to use the credit card scissors used today. Instead, you can look for a new credit card issuing bank that offers affordable interest rates and matches your financial capabilities.
Make sure the latest credit card issuing bank offers more attractive and profitable offers, so you don’t regret ever switching to a new bank. Take the time to find the best bank reference so you don’t have to change banks after a few months using a credit card.
4. Remaining credit card installments
Do you want to cut credit cards in the near future? Make sure the credit card installments are paid in full. If not, then credit card cutting will not be permitted by the issuing bank because this action will automatically harm the bank itself.
Try to imagine if this action was allowed, then the losses obtained by the bank might be countless. Moreover, the number of credit card users is not just one or two people, but millions of people.
In order to make the repayments immediately, try paying the installments regularly. If necessary, activate an auto debit payment system that will make it easier for you to pay installments per month. Avoid the habit of delaying payments or paying a minimum amount that can cause debt to pile up, rather than paying off slowly.
5. Are you sure or not?
Try asking yourself one more time, are you willing to cut up credit cards and not use them again in the future? When you are ready, no need to think long to do what you want. Please credit card scissors, especially if this action is the best decision for now. And conversely, don’t cut up credit cards if you are still unsure and not ready to break away from the habit of using credit cards.
To be more confident in making decisions, try to flashback on the use of credit cards so far, including the impact on how to shop so far. If the impact leads to a negative direction, you are more determined in making the decision to cut up credit cards without being haunted by the shadow of regret in the future.
Do You Need to Cut a Credit Card?
To be honest, cutting out a credit card is not necessary especially if the credit card provides convenience and attractive offers that suit your needs every month. The thing that needs to be done is to control each expenditure carefully and in detail, to reduce the consumptive attitude, and to be wise before buying an item so that the financial condition is far from being destroyed.
Because indeed, credit cards are completely innocent of installments that cannot be paid. However, the error is in yourself, so you need to make corrections to how to use a credit card.