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Plan to Manage Your Debt
Debt Detox: Your Plan to Ditch Debt and Breathe Easy
You might be working hard, but unable to save anything in your account because of one minor debt. No matter how insignificant the loan amount is, if you haven’t cleared it in time, the interest will keep on building.
Well, now imagine how you would feel if you had no debt to pay, and your entire paycheck was helping you gain financial stability. No doubt, every individual wants a stress-free life, and the only way to achieve this dream is by remaining debt-free. With no outstanding dues, your present and future feel safer and secure.
If you are stuck in a vicious debt cycle and need a quick solution, this article will be helpful. It will help you gain insights on debt detox. Once you read through, you will find the perfect method for removing the reason that has been suffocating the cash flow in your life.
How to Ditch Debt with Simple Changes?
Dealing with debts is overwhelming, but if you’re ready to repent for your mistakes, it’s possible to save yourself. Start with:
Admitting your problem
It might sound vague, but the first step in debt detoxification is realizing your mistake. Acknowledge your mistakes and understand your habits, which led to this point.
Make a budget
Once you have admitted your fault, it’s time to manage your earnings. Start with a list to see where you spend most of your income. The more critically you analyze your budget, the easier it is to manage every dollar of your paycheck. Apart from managing money, a budget helps you realize where to cut down. That allows you to save more money to pay off debts
Think of a Side Hustle for Some Extra Cash
You can’t manage debts with your existing income, so why not think of a side hustle? It could be anything from a part-time job to a side business. Anything helping you earn extra cash is beneficial at this hour.
There might come a time when you will need to even sell your car or extra luxury goods to speed up the debt-clearing process. Once you are free from lenders, you will have ample time and money to earn back every asset.
Say Bye to Credit Cards
Your biggest enemy is the credit card in your hand. We understand the temptation to use your credit card can be massive, but it could add to your existing problems. So, it’s time to stop using any credit card. Even if it’s as simple as buying a loaf of bread, do it with your own money, not a credit card. Start using cash for every transaction you make.
Using your cash has many advantages, including saving you from additional borrowing and limiting purchases. In our opinion, when someone sees money going out of their wallet, they are discouraged from spending on unnecessary goods.
Don’t Invest Anywhere
Why do we say stop investing? Well, right now you need all your income to pay off every last bit of debt in your name. That means you can’t divert resources anywhere else. Don’t worry, this won’t be a permanent arrangement. It’s a temporary process till you’re in the clear air.
Once you clear every debt, invest in as many ventures as you like and save for retirement.
Use Debt Snowball to get out of Debt
With your expenses sorted and a little cash in your account, it’s time to use the snowball method to end your debt misery. Most of you might not know, but the snowball method is effective in helping you juggle multiple debts. Start by listing all your debts, regardless of how small or significant they are.
Within the snowball strategy, individuals start with clearing the smallest debt. Meanwhile, do make minimum payments on other debts. With the smallest debt clear, it’s time to move on to the next smallest debt. Repeat the process until all your debts get cleared.
The average time for individuals to clear their debts using the snowball method is around two years. Think about it, you get free of a lifetime of debt imprisonment in just two years.
It’s Time to Use Coupons
There might have been a time when you spent money without thinking but now times have changed. Since you’re under significant debt, you need to shift to frugal living methods. That means using as little money as possible. Even if it means collecting and using coupons, do it. There is no shame in using coupons to purchase grocery items or other necessities. These ways get you out of debt even faster.
Cut Down your Trips to Restaurants
Visits to the restaurant are a big no until you’re not free of every single debt. A single visit to any hotel costs thousands of dollars and this is not the time to afford such expenses. Start cooking meals at home using low-cost ingredients. In addition to limiting dine-out experiences, make meal plans to not exceed your budget. Meal plans are ideal for managing your menu and your pocket.
Honestly, it will be overwhelming at the start but with time when your debts start clearing off, you will feel a sense of relief. Once you get rid of interest from your life, you can enjoy all the dinners in fancy restaurants as you want.
Ditch Unnecessary Memberships
Having a gym membership might sound great but with debts looming over your head, it is an additional expense that can be cut down. Yes, any kind of membership that costs you money needs to go away from your life for the time being. You can remain happy and healthy with home-based workouts.
The more you spend in this phase, the lower the chances of clearing your dues. So, find free entertainment sources to jack up your existing budget.
Is Debt Detox a Successful Strategy for Solving Money-Related Crisis?
In our experience, nothing could save you from debt problems other than a quick detox. Yes, it might seem like a long journey, but you will get there in time. Nothing is more relaxing than being in a debt-free zone is a blessing.
So, keep trust in our tips and witness the results yourself. Your life will get much easier with all the debt gone from it.
Finding the Right Help in Tough Times
FEL Canada knows how difficult managing debt is, especially in these economically challenging times. That is why we provide quick loans in easy installments. Instead of charging high interest, we keep it at the bare minimum. You could apply for a small loan and clear your previous debts instantly.
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Do Credit Cards Expire If Not Used: Reality Check
Credit cards are a great way to make payments when needed but if it is not needed for a long time, will it get expired? Will your credit card get closed? In this article, I am going to answer all your doubts.
Credit cards are lifesavers most of the time. You can use it to your heart’s (and well your credit limit) content and worry about paying it back at the end of the month – how easy and convenient is that?
Besides the increased purchase power and a secure gateway of payment, you also get to build your credit rating and earn rewards and cash backs at many restaurants, hotels, and other service providers. All this is if you actually and regularly swipe up your credit card. What most people aren’t aware of is that credit card inactivity is one of the biggest reasons for account cancellation.
Credit cards may expire or get closed if they are not used for a year or more. The most common reason for closing a credit card account is inactivity. To avoid cancellation of accounts, try to use your credit card at least once every 6 months.
Many credit card issuing companies usually suspend an account if the credit card is not used for a year or more. This is mainly because if you don’t use your account, the company doesn’t make any money from transaction fees paid by merchants or from interest if you carry a balance.
They prefer to give that line of credit to someone who’ll actually use it and in turn help them make some money too.
While unused credit cards usually expire after a year, they can get expired before 1 year as well. Stay tuned to get a deeper analysis of cancellation of credit cards when not used and how you can avoid it.
How Long Can a Credit Cards Stay Without Using?
Now, we are sure some questions are looming up in your head, and one of them being – how long can a credit card stay without use? Well, this usually depends and differs from the credit card issuers but the time frame is usually between 12 and 24 months.
This is a common period range and it is therefore advised to swipe up your card from time to time, or at least once or twice a year!
It is also to be noted that the card issuer might not reestablish a canceled account, they have no obligation to do so. This hampers not just your credit score but also any accumulated rewards that you might have on your card.
So, if you think you still need the card or might need it in the future, it is best to get in touch with the card-issuing company immediately and ask them to have the account reinstated immediately.
How Do Credit Cards Get Expired?
Like we have just explained, one of the reasons for credit card expiration is the lack of activity from the customer’s end. Besides that, there are also several reasons that can be the reason for your credit card to get expired.
If you check your credit card, you’d notice a valid to date on the card. It is usually placed on the card for normal wear and tear that the card and the chip inside it might face.
That’s why most companies issue a new card at an interval of three years to prevent any technical issues due to chip or plastic wear and tear. This expiration date also helps in preventing any fraudulent activities.
What Does Expiration Date Mean On a Credit Cards?
The expiration date written on the back of your credit card is the date till your credit card is valid to use. For example, if your credit card has an expiration date of January 2023, then your card will expire in January 2023 and you will no longer be able to use that. No matter how often you use your credit card, it will expire at this date.
Now, this doesn’t mean your card cannot expire before the given date. As we said, credit cards get expired if not used for more than a year. So, keep this in mind.
How to Prevent Getting Your Credit Cards Expired?
Now, coming to how can you prevent this entire ordeal from happening. The answer is pretty simple – use your card often. Besides building up your credit rating, the frequent use of your card will also let your card issuing company know that you’re not a dead-end but an active account holder who’d help them raise money through interest and more. Even a small payment can prevent your card from deactivation.
Also, if you are past your expiration date and have been issued a new card, then remember you must activate and use the card to bring it to life and valid to be used ahead. So, keep your credit card handy and use it often to build up a good credit card score and rating and (of course) the rewards and cash backs that come with it.
One must also remember that the credit card issuers aren’t required to give their customers any notice before a cancelation of an account. Although they are required to inform their users of any major changes in the terms of their accounts, credit card inactivity doesn’t make a cut in this.
So, if you’re awaiting a call from your issuer as to when your card might expire if you don’t use it, your phone might not ring at all!
Can a Credit Card Expired Due to Inactivity Be Reopened?
Yes, credit cards expired due to inactivity be reopened if you take steps immediately within 2-3 days of deactivation. The chances decrease if you get late in responding. While you can even get it reopened if you got late, but that’s a matter of luck. Let’s see what you have to do if your card gets deactivated due to inactivity.
What to Do If Your Credit Card Gets Expired Due to Inactivity?
- Contact the Issuer For Reactivation
The very first thing you should do once you know about the deactivation of your account is to contact the issuer and ask them for reativation. A straightforward follow up by the cardholder can in some cases lead to reactivation of the credit card.
Notwithstanding, you can send a composed solicitation to the guarantor to reactivate your credit card referencing that you have consistently made the installments on schedule and have a decent credit history.
- Check Your Credit Score
If the restriction of your deactivated credit card was pretty high, your credit score may take a profound dive attributable to the expansion in your general credit use proportion. Check whether your credit score is least affected and if there is an extensive drop in your score, you can take restorative measures to revamp your credit score.
Screen Your Credit Report
Do screen your credit report each month to guarantee that your credit card account is shut in the report also and there is no exceptional bill on the record.