Live within your means, never be in debt, and by husbanding your money you can always lay it out well. But when you get in debt you become a slave. Therefore I say to you never involve yourself in debt, and become no man’s surety.
Andrew Jackson, 7th President of the US, 1829-1837
It’s a fact that more and more people are sinking under the weight of credit card debt! They are using them to pay for their basic living expenses even their mortgages and it’s a trend that can only end in disaster, pain and plenty of tears.
Credit cards are traps and if you are in a debt trap compliments of credit cards, then the time to act is now. Credit card debt holds you back in so many ways:
It stops you from saving to your optimum level
It stops you from enjoying a life free of financial stress
and It prevents you from moving ahead with sound financial investments.
Put simply, credit card debt will stop you from getting anywhere financially. It makes sense to cut your credit card debt and it makes sense to do it now rather than later. So how do you go about doing it? Here are my recommendations to help you clear your credit cards now:
Budget effectively: Look at the money coming in each month, and look at your monthly outgoings. Account for every expense you have and ensure the pesos coming in cover it. When you do this, you won’t need credit cards to cover your essential costs.
Commit to paying the cards out: You know now you don’t need the cards to pay your essential costs.
Cut your cards up: No more using the cards end of story! Use debit cards because they are funded by your own money.
Pay more than the minimum amount: Paying the minimum repayment en-sures you stay in debt it is what the credit card companies want you to do. Pay more than the minimum out to clear those cards ASAP!
Use your savings to pay your cards out: There is no point keeping savings that make you a few percent in interest, when you are paying 16+ percent on credit cards. Use your savings to pay your credit cards out.
Transfer high interest cards to low interest cards: Research what the low interest cards are and transfer your high interest card debt into low interest cards. Be sure though to cut up the new card when you get it. You are NOT using it, just paying it out.
Avoid overspending and live within your means: Living beyond your means will always end in the whaling and gnashing of teeth. It’s really not worth it! You can only own so many pairs of shoes, so many polo shirts and so many gadgets. It’s more important to get yourself financial and debt free!
When shopping, make a list: No more impulse buying! Stick to your list! And avoid shopping centers unless you absolutely must go to get something you NEED!
Stick to your budget: You can’t go wrong with this!
It may sound like hard work, but it is ALL worth it! A life without credit card debt is possible. You just need to focus and be disciplined. When you are free of credit card debt, you will be able to get on track to enjoying a life of financial independence.
Helpful Tips for You:
Budget effectively
Commit to paying the cards out
Cut your cards up
Pay more than the minimum amount
Use savings to pay your cards out
Transfer high interest cards to low interest ones
Avoid overspending and live within your means
When shopping make a list
Stick to your budget
Shared by Coach Amos
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Blog by John de Ridder, 0419-427-419, john@focusyourmoney.com.au, Canberra, Australia
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