Ever feel like you are paying for a meal you ate and put on your credit card months ago? You just might be. Personal consumer debt is on the rise. We all want that quick fix. You know many times for me, I have justified purchases without really being able to afford them.For me it was time to wake up and tackle my debt. Are you trying to eliminate the debt that is weighing you down? Do you really want to get rid of your credit card debt? Here are some suggestions on how:
1. Use some good old-fashioned common sense! Most of us got into credit card debt because of how easy credit is to get. Then we useour cards without really even thinking about it. How about paying with cash, and not using your card? Trust me cash works, and you aren’t wondering how you are going to pay for that meal when the statement comes in. Become a mindful credit card user or better yet stop using your cards.
2. Stop all impulse shopping. Do you shop with a list? Are you going to the mall and just browsing and when u spot a sale you just have to have it? Been there done that. Trust me you don’t need those new shoes or that new handbag if you have good ones in your closet at home. Really how many shoes or whatever does one person need.
3. Take a good look at your spending. Write down all your expenses. Are there ones you can cut or reduce? While you are doing this track your spending. With all of us carrying smart phones there are apps that will let you track your spending. Try it for a month. Don’t have an app then use an old fashion notebook and pen, but do track it. Think do I need it, or can I put that money towards debt reduction so I can have a better future.
4.Get a plan in place. Set a budget. I love using Mint. It has helped me keep a careful track of what is going on and helped me get things in place. I love the personal budget planner. ( this is not a paid endorsement).
5. Look for ways to save on your debt elimination. Can you ask for a better rate? Can you take advantage of a balance transfer offer? Carefully look at all of your options.
6. Always pay more on the card with the highest interest rate. You want that debt gone first trust me. Once that card is done, move on to the one with next highest.
7. Be a smart savvy shopper. You want to free up more money for debt reduction. Start using flyers for sales, comparing costs, and shopping around when you need to buy. Become a smart consumer.
8.Always Always pay your debt on time! If you don’t the interest rates will kill you literally, and think you lose your bargaining power as well because you now become a risk.
9. Keep a scorecard. Track your progress. I again love Mint for this. It allows me to see things very clearly.
10. Celebrate your victories. Find free things you can do to celebrate your money smart ways.Reducing debt does not mean you can’t enjoy life, it means you are being smart about how your going to enjoy it. Celebrate when you know you are making progress, it will help keep you on course.