A Better Way to Manage Your Everyday Money - Book - Page 226
Convenience debt
Convenience debt refers to using credit cards without paying interest or fees. When you don’t
pay a credit card statement’s new balance every month, that credit card becomes short- or
possibly long-term debt. Only when you pay each statement's new balance amount in full every
month is a credit card considered a convenience.
Cut up the cards?
When credit card debt gets out of hand, the first step toward
eliminating the debt that is touted by some financial gurus is to cut
up the credit card. While this may have an emotional benefit,
destroying a credit card accomplishes nothing.
● The credit card account does not go away.
● The account balance is not reduced.
● Before the credit card expiration date you will be issued
new cards.
Paying off credit card debt, or any other type of debt, is best
accomplished by:
1. creating a payoff plan that you can afford, and
2. sticking to the plan to completion.
When paying off a large credit card balance, take the actual card out of your wallet (real, digital
or mobile) and put it in a safe place. After the balance is paid off, retrieve the card from its
hiding place. When you resume using the card, keep it a convenience by managing your usage of
the card with PerNetFlow’s four-step method (discussed in Chapter 6).
Paying off debt
Planning a way out of debt is easy with PerNetFlow. With a clear picture of your cashflow for
the next twelve months, you can put together a pay-off plan that is comfortable and, more
importantly, is a way forward that you can stick with to completion.
The choices you have for getting debt free when using PerNetFlow include a consolidation loan
and the three options for creating custom pay-off plans.
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