A credit card has become one of the most convenient tools in this complex business world. Credit cards add to your convenience, and it is one of the safest methods of transacting your business dealings. Now, take a look at the other side of a credit card. As mentioned in the article dated August 4, 2016 published in RJ (Las Vegas Review Journal), if you do not properly manage the credit card, then it can land you in a debt trap. In order to avert such a situation, you may consider credit card debt cancellation.
Increase in cases of personal insolvency:
According to the Australian Financial Security Authority, during the last three months, the number of personal insolvency cases has increased by about 13.7%. This increase is attributed to the loss of employment and various other types of personal financial attributes. With the loss in income, you also fail to make payments on your debts and keep wondering how to cancel debt on your credit cards. A default in payment on credit cards will attract additional interest, which slowly draws you into the debt trap.
Drawbacks of being declared insolvent:
The debt trap created by the credit card can even force you to apply for being declared as insolvent. But, declaring personal insolvency has its drawbacks too. Once you are declared insolvent, it can affect your future credit eligibility, and in some cases it can even affect your future business. In some cases, you may become ineligible for certain specified category of employment.
Keep away from debt trap:
Therefore, before applying for personal insolvency you must have a thorough knowledge on the consequences of personal insolvency. On the other hand, it would be advisable that instead of getting debt trapped and applying for personal insolvency, you should prefer to seek credit card debt cancellation. See more at Debt Mediators
Cancellation does not end by clearing the debts:
You may wonder that in Australia alone out of about 16 million credit card holders, each year nearly 1.1 million apply for cancellation of their cards. But, you should also understand that the credit card debt cancellation does not end with paying your debts on the card. In order to cancel the card you will have to follow certain procedures.
Primary card holder:
In the first place, you should remember that only the primary card holder can seek cancellation of the card. If you have authorized any direct debits like the EMI on certain purchases you have made, then such debits should be stopped. Then clear the outstanding amount on the card and make sure the debt balance is zero.
Call the helpline:
Now call the credit card company and after verification procedures inform the person on the helpline about your intention to cancel the card. Get the confirmation from the person that your card is cancelled. Make a note of the date, time and the person to whom you spoke on the issue.
You can also send a letter or mail to the credit card company confirming your discussion with the helpline regarding cancellation of the card. You should also ensure that you get a letter or mail confirming the cancellation of the card. Now, it is time that you destroy the credit card in the appropriate manner.