ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Managing Credit Cards & Payment Options

How to Manage Your Credit Card Debt

Updated on May 5, 2011

This hub is not about consolidating your debit, it is about managing a credit card to the best advantage, which is enjoying the perks you can get from a credit card without having your credit limit max'd constantly.

Having a credit card is a great idea; buying something and having 30 days to pay it. The best perk of a credit card is the 1%-5% cash, airline miles, etc. that most credit card companies pay you for using the card. But those seemingly small but $5, $20 items bought during the month did not seem like much but added up so the credit card payoff balance became unmanageable and impossible to pay off totally. Now the credit card debit on the end of the month statement carries over and with it interest charges.

Without a doubt, paying off just a portion or the minimum payment on a credit card debt statement is the not the best way to proceed because now there remains a balance and will be added to during the next month, then the next month, until so much credit card debit is accrued that paying it off isn't possible.

I have developed a method which might give you some help with your credit card debt.

A Method to Control Credit Card Debt

For this to work you need to be disciplined and use it consistently throughout the month. When you write a check or make an electronic payment you immediately subtract it from your checking account balance. Now you know how much money you have for the month after that subtraction. My method works the same, by subtracting each and every credit card transaction from your checking account balance. The money, of course, doesn't actually go out of the account, just out of your spendable balance.

To begin this method:

  • Each time you use your credit card, write the credit card debt amount where you would write in a check, listing it as a "C" rather than a check number.
  • Write in the details and dollar amount and subtract from your balance.
  • At the bottom of your checkbook register page, in that wider space provided, enter the dollar amount of the credit card debt. This becomes the balance you owe for your credit card.
  • Each time you use the credit card, add that transaction to your balance listed below.
  • At the end of the month, when your credit card statement comes, you have the credit card funds "saved" in that balance amount at the bottom of your check register.
  • When you go to pay the credit card debt amount, simply write the amount in the debt column of your register, then in the deposit column write in the amount of your credit card fund. The two amounts will be the same ideally if you have added each transaction throughout the month.
  • Now at the bottom of the check register you should cross out the amount and write in a 0, ready to start again for the next month.

This may seem complicated at first but the idea is you never are surprised with a huge bill because you have been keeping track of the credit card debt each month and are able to pay it off each time.

The actual balance in your checkbook, with the bank, would be obtained by adding your checkbook balance and your credit card fund balance together.

Below I have created a sample.  You see that your actual checkbook balance remains at $50 when you add the two balances together


Checkbook Register

Number
Date
Transaction
Payment
Deposit
Balance
Beginning Balance
 
 
 
 
$50.00
CC (for Credit Card Fund)
11/1/10
Gas
$20
 
$30.00
CC
11/2/10
Food
$5
 
$25.00
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At the Bottom of the Register Page:
 
 
 
 
 
$0 $20 $25....
Crossout old
$ each time
 
 
 
Bottom of Open Page of your Register will look like this: $0 $20 $25

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)