Credit Card Debt Solutions
Most of us know how “borrowing too much” feels. Especially now when millions of Americans are being bombarded with billions of pre-screened credit card applications from banks, department stores and credit unions. Its hard to resist temptation to breach the gap between your income and spending using “easy” credit, ignoring the balance, and piling up outrageous interest rates and hope for..
I find it hard to imagine what people who accumulate tens of thousands of dollars of credit card debt over years of reckless spending are hoping for. Now its time to examine the spending habits that allowed the debt to pile up and look into various credit card debt solutions.
First and foremost, make a budget. Yes, right, the old boring excel spread sheet where you meticulously document every purchase no matter how insignificant it might seem.
Separate. Break up your expenses into “must have’s” and “nice to have’s”, and make sure that the former get paid for in cash first. Try to budget more than minimum for credit card payments, in order to hit the principle along with interest payments.
Now, consolidate. It’s one of the most recommended credit card debt solutions as it allows you to reduce your interest rate and see your balance dropping a lot faster. It demands a fair amount of financial discipline on your side. Choose one card with lowest interest rate and transfer all the debt to this card. Destroy all of the cards but one and use it only for emergencies (sudden realization that you don’t have shoes to match your new purse doesn’t count as one). Leaving it at home when going shopping will make your life a lot easier.
Stop acting rich, and concentrate on becoming rich. Accept the fact that there are certain things you can’t afford. Right now. Too many people over-spend trying to appear rich, effectively jeopardizing their chances of accumulating any wealth in the future. The rule of thumb is simple – don’t spend more than you make, and try to save at least 10% of your pay check once you are happy and debt free.
If you want to find out more about credit card debt solutions, inform us of your situation in the contact form below. One of our legal advisors from the Freedom Law Center will get in touch with you today.
Sarah M. Kline
TEPA Opportunities
(310) 295-1965 (9-6 PST)
