We finally settled our credit card debt and bid goodbye to the plastic card for good. We have used it for nearly a decade. It was useful in times of sickness and other emergencies. Although we have stopped using the credit card two or three years ago, it doesn’t stop accumulating monthly interest. It reached more than P30,000 and there’s no way we can pay it in cash. We really hope to close the account until an opportunity comes. There is no reason to rejoice though because we have to secure a salary loan from a government agency in order to close our credit card. It’s the only practical step we can think of to avoid falling further into debt. The salary loan is payable in two years. We may be paying another loan but we’re sure of paying our debt in a definite period of time.
Opening of classes is the time of the year when parents normally get excited and apprehensive at the same time. They get excited because their kids will be entering a new phase in their lives as a student. They feel anxious if there are reports of tuition hike and increase in prices of school supplies. All these things happen beyond are control. So in instances that an additional financial support is needed, some parents resort to using their prepaid visa. In our case, if push comes to shove we’ll just have to use our credit card. (Like what I wrote in my previous posts we maintain the card for emergency purposes only.)
Every now and then, hubby would receive letters from credit card companies inviting him to apply for a credit card. These companies usually offer zero-interest rate, rebates and credit card debt consolidation as marketing strategy to attract more clients. They would even offer easy credit card processing where you can get an activated card within a few days. We already own a credit card and hubby opted to maintain only one credit card account. Our credit card has been very useful to us during emergency situation. I don’t want to sound like encouraging other people to get a credit card, but during urgent situation it will surely help you cope. One thing though, if you own a credit card make sure to use it wisely and don’t use it on impulse.