Managing Credit Cards in a Recession It Requires Maturity and Responsibility
We might as well admit that we are at the start of a recession. There will be some tough times ahead, and the economic downturn will threaten the financial wellness of many people. Everyone can get through these troubled times, but it takes a level of maturity and responsibility. A primary challenge is to manage your credit card carefully. It is not too complicated, and a person can take a few steps to make credit card debt controllable.
Use cash when you can. Getting into debt is easy if you use credit cards for everything. To avoid this, try to use cash as often as possible for small items. This will help you stay within your budget and avoid overspending.
Don’t be tempted by offers of ‘free’ money. Many credit card companies offer 0% APR introductory periods to entice new customers. While this may seem like a great deal, it’s important to remember that introduction rates eventually expire, and you’ll be left with a higher interest rate if you still need to pay off your balance by then. So, only take advantage of these offers if you’re sure you can pay off your balance before the intro period expires.
Avoid using your credit cards for unnecessary purchases. Using your credit cards for non-essential purchases during a recession can be tempting, but you must resist the temptation! If you can’t afford it in cash, you can’t afford it, period. Stick to only using your credit cards for essential expenses and emergencies—anything else can wait until after the recession is over.
Plan to pay off your debts. Once you’ve reviewed your budget and identified areas where you can cut back, you should know how much extra money you can put toward paying off your debts each month. Come up with a plan to use that extra money to pay down your balances, starting with the card with the highest interest rate.
Know your limits. Knowing how much you can spend without getting into debt is essential. One way to find out is to create a budget and track your spending for a month. Once you know your spending patterns, you can set a limit and stick to it.
Take Advantage of Experienced Assistance
Countrywide Pre-Paid Legal Services offers a financial wellness plan that can help during tough times. We have a nationwide network of certified counselors who deal with people’s common financial difficulties. Credit card management is one.
A Countrywide counselor will assist the plan member by doing a budget analysis and helping that person construct a manageable budget that allows for expenses to be met and some savings at the end. In addition, our counselors advise how to handle credit cards and avoid unnecessary debt efficiently. There is a counselor in the community of every one of our client organizations.
We Value Our Clients
Countrywide establishes a close relationship with all our financial wellness clients. We work with their management staff and respond to problems immediately. In addition, we ask the employers to help us design their unique financial wellness benefits.
We have several options that include help with medical bills, managing college debt, and dealing with bankruptcy issues, among other services. We ask our clients to select those options which will be part of their plan. The choices are included in the superior member services and streamlined administration. The consequence is a financial wellness benefit that provides excellent assistance to all plan members.
The coming months may hurt the financial wellness of many. Following the tips mentioned above can help, and our counselors can provide even more advice to plan members. If you’re interested in what we have to offer, please feel free to contact us at your convenience. We can help your employees survive difficult financial times.
