Christmas time is fast approaching, and it’s signaling another spending spree for many people. Unfortunately this is while some are crying out for help because they’re still drowning in debt from last Christmas’ spending spree.
The experts say pay everything in full, but if you’re like me who owes credit card companies more than $18,000 (some of which accumulated from Thanksgiving and Black Friday spending sprees) and with about a $2,800 monthly home pay, there’s isn’t any way that you can possibly do this. Fortunately, I am cutting off the monster’s head by taking small steps to get my credit card debts paid off once and for all.
Cut Up Your Cards
This is the first thing I did and I do not use my cards under any circumstances, especially since many of them still carry a balance from previous purchases. The logical reason is that all purchases you make will be accumulated onto your previous balance, including interest and penalties. Making “No Money, No Purchase” into my motto has also paid off. Paying only in cash henceforth helped me get thorough in managing my purchases. By discarding the plastic money, you’ll save money and be environmentally conscious at the same time. In fact, some personal finance experts suggest cutting up your credit cards to reduce temptation.
Pay Things in Full
It’s always the best policy to pay in full immediately. This is one reason that credit cards are the most expensive debt, because when you don’t pay in full immediately you’ll have to pay high interest rates and expensive penalties. The trick is paying your bills on or before the due date in full.
Keep Your Chin Up
You’re wrong if you think that your salary can’t pay your debt. Perhaps, not immediately and in full, but there are strategies that can let you do it. One is to set aside a percentage of your salary for savings. You can cut off a small percentage of your variable expenses, and use the accumulated amount to pay off at least one of your debt bills. You can also use extra income from a second job to foot the credit card bills. If you don’t have a second job, it might be time to look for and get one.
Ask for Help
You can try to look for a relative or close friend who can lend you the money to pay your debt in full. You can talk to your friend or relative to allow you to pay back in installment. This means you get away from the high interest and penalties and even if they’ll charge you with interest, it’s still lower than the credit card company. The trick here is to know which people would loan you the money without it harming your relationship.
Don’t Fight with Your Lenders
Don’t fight back against your credit card company by refusing to pay. The most logical step is to sit down and talk with them, and ask for lower interest rates or penalties to be waived. Make sure to understand the options they offer you before you accept any.
You got into deep debt simply because there’s something wrong on how you handle your money. Don’t deny this, instead accept the flaws in your attitude on money and on your financial management. Every person is different in managing their finances and there’s nothing magical about money. Therefore you have to work your way through surviving with what you have inside your pocket. If you have an irregular job or a low income, don’t live a lifestyle you can’t afford. Live within your means and not beyond. This is a small step that when followed strictly will allow you a lifestyle with a debt-free privilege.
What small steps have you taken to help yourself become debt free?
