Are you living from paycheck to paycheck because of your credit card debt? Are you tired of living that way? Tired of always being stressed out? If your credit card debt is constantly on your mind, it’s hard to not be stressed out all the time, right?. There is a work around for eliminating that stressful situation. Reduce your debt bit by bit. If approached the right way, you should be able to reduce your debt a little at a time. There are 4 simple steps you can take to do just that.
4 Steps To Dig Out Of Credit Card Debt
Once you dig yourself out of debt, you won’t know what to do, your life will be so much easier and less stressful.
#1 – How Did You Get Into Debt?
Most people are unsure about how they ended up with so much debt. The long and short of it is that it was probably bad spending habits. Sloppy spending habits can pile on more credit card debt that is manageable.
So start by taking the time to figure out how you accumulated so much debt.
The Big Why?
Who carries cash anymore, we either use debit or credit cards. That is why it’s easy to rack up credit card debt. We see, we want, we hand over our credit card and never think about it (until we get our statement). By the time we do get our statement we’ve forgotten about our purchase. And maybe we couldn’t afford that purchase at the time we made it or the time payment is due either. So what do we do? We plod along just paying the minimum amount due while our balance continues to accrue interest at an enormously high rates.
The real key to any correcting sloppy spending habits that you may have is to get into the habit of paying the entire amount due on your cards every month. Carrying a balance is a big no-no. Paying the minimum amount due will never get you ahead, but you sure do help the credit card companies. Credit card companies make their money on the interest they charge so they love people who carry balances and pay the minimum amounts due. Stop helping credit card companies and start helping improve your finances.
#2 – Tame Your Spending Habits
If you want to afford to pay your entire credit card bill in full every month, you need to tame your spending habits. The best way to do that is to, oh, no, wait for it….write-up a budget. Unfortunately, budgets have such a nasty reputation. Once people hear the word budget, they stop listening. But they are so good for you. Read on.
The Big How
Budgets are a way for you to hold yourself accountable. The value of following a budget is that you get to track where your money is going. A budget can help you tame your spending habits. Budgets are like diets though, they only work if you follow them. It’s okay to stray now and then from your budget, but if you truly want to manage your credit card debt, stick to your budget. With so much going on in your life, it’s hard to remember every dime you spend. Your budget will do that for you.
#3 – Stop Spending, Stop Increasing
Do yourself a favor and stop increasing your debt. If you continue to over spend and rack up your credit card balances, you are defeating your goal of trying to get out of debt. Credit cards just allow you to dig a deeper and deeper hole.
The Big Temptation
If the temptation to have a credit card in your wallet is too much, cut it up, get rid of the card. You can work on disciplining yourself, only buy items that you need instead of want. You should avoid impulse buying because those are usually the items you don’t need but want. Only buy items when they are on sale. Believe it or not, sales are on a cycle; the same items get put into a rotation cycle. So if you missed the sale this time, you can get it at the next cycle.
#4 – Make It A Combo
Debt consolidation is common ways to get a better handle on managing your debt. If you just feel overwhelmed by it all and don’t where to start, you may start by consolidating the debt to make it more easy to manage. Debt consolidation is not a bad thing, by consolidating you put all of the debt in one place. Sometimes when you have it all in one place, it’s easier to start digging yourself out. The poor use of your credit cards put you into debt, but you can correct that with a little commitment and focus. Take the time, make the effort, in the long run, you will be glad you did.
You are in charge of your credit card debt. You decide when to pull out your wallet. You decide when to buy something or pass it up. The amount of credit card debt you hold is all up to you. Free yourself from the ball-and-chain of credit card debt, make a change, start reducing your debt by holding yourself accountable for it.