Have you heard about the so-called swarm debt? It is the term that some financial experts use to talk about the debts that enter those people who use more than three credit cards.
Having a large number of cards may, for some, be synonymous with power and status, but at the same time it can bring more problems than you think, especially when you fall into this type of debt. Being late on a card is one thing, but having them all with outstanding payments is something very different and dangerous.
To learn more about this type of debt and how to get out of it, consider the following points:
Swarm debt is generated by an excess of expenses and information:
If you have a credit card, you must remember your cut-off date, payment date and, in addition, the amount to be paid. This is the minimum you should keep in mind to keep your card up to date. If you use three or more plastics, it means that at least you will have nine data to remember! This makes maintaining control difficult, and many end up falling into this type of debt.
In addition to expenses, you pay commissions and insurance
Something you should not forget is that you are paying insurance and commissions for each card you own, which in the end, generates you spend more money than you think. Having more than one card is not bad, but we must be honest about what we spend and if that suits us or not.
To get out of it, it is necessary to prioritize debts
One of the most effective strategies to get out of the swarm debt is to prioritize debts. Whether by interest rate, amount owed, etc., it is necessary to select a criterion and establish an order. Thus, you can start canceling one by one and focus your efforts. In the others, the important thing is that, at least, you meet the minimum payment.
Swarm debt is a complicated situation, but getting out of it is not impossible, it is enough that you determine to achieve it and take these tips into account.
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