It is often hard to change spending habits. We keep charging and our credit card debt keeps building. The Schreditcard seems to offer a solution with no big change in spending habits. However, your credit card balances will decrease.
Schreditcard – Beat Credit card Debt
Schreditcard offers a fairly simple solution to credit card debt. It was started by Peter Kates who stated that consumers were in the habit of paying their credit card when the statement tells them to and they are conditioned to paying only the minimum payment. People always feel that next month something will happen and they can pay a big chunk. However, only one in four cardholders are actively paying down credit card debt. Hence the problem needs to be tackled head-on.
Of course this makes sense. Most of us take our credit card debt lightly. We as a society take credit card debt in stride as part of life rather than the hindrance it really is. But if you are interested in getting rid of that unwanted hindrance you should look at how Schreditcard works.
Schreditcard puts forth the idea of having the consumer’s salary paid straight to the credit card. After paying for other expenses, the excess of the salary go straight to paying down the credit card debt, thus eliminating much of the interest while paying the balance down. The Schreditcard also puts forth the idea that interest should be paid to positive credit card balances, and advocates greater access to funds for minimal fees.
The Bottom Line for Clearing Credit Card Debt
Banking institutions will not manage debt for you, so overburdening credit card debt is the result of our not being capable of managing money. In truth, the greater percent of income to the bank is through credit card fees such as interest, late charges and over the limit fees. Banks actually encourage the use of minimum payment, as that insures you will be hooked for years of interest. Mr. Kates is in favour of credit card statements showing the effects of paying minimum payments as opposed to a more realistic approach.
It is true that this is the case. Paying minimum payments only fills the bank’s pockets. There needs to be some sort of brakes on credit card debt. The Schreditcard offers this, but no financial institution has backed it enough to make salary credit an option. In the meantime, you are relegated to finding your own way to clear your credit card debt.
