In this presentation, I will be looking at “The Simple Guide To Getting Out Of Credit Card Debt”.
It is quite sad that year after year, some people are still getting themselves entangled in Credit Card Debt. It is a shame to know that so many people feel that they need so many things but realize the only way that they could get those things is by using their credit cards, and they have plenty of cards to select.
Credit Card Debt Is Not New
Credit card debt is not anything new and might well be around for years to come. It does not look like many people realize just how bad this problem is. If you are experiencing sleepless nights and pondering on how you are going to clear your Credit Card debt then, you should continue reading this article.
Debt Can Cause You To File For Bankruptcy
People need to understand how dramatically credit card debt can affect your financial standing or lack thereof. Credit card debt is one of the leading causes of why an individual would end up having to file for bankruptcy or take out mortgage loans on their homes. People get carried away with spending on their Credit Card and not paying attention to the enormous interest rates attached to these Cards.
Start choosing to throw away all of those credit card offers that you get in your mail so regularly. Trust me. You do not need any more debt. If you continue to buy things on these cards, all that is going to happen is that the monthly bills will keep increasing. It will make it very difficult for you to make those monthly payments.
To all of you that have not gotten into severe credit card debt yet, don’t let this endless cycle of unbelievably expensive debts take over your life. Let me give you a bit of advice. If you can start your life with little or no Credit Card debt, your life will be much less stressful.
Because credit card debt has gotten so unbelievably out of hand, perhaps you could start a new trend and try staying clear from getting yourself into so much debt. My advice to you is to go back to the drawing board and devise a plan as to how you want to lead a successful life that will be free of debt.
Here are 4 of the fastest and most effective ways to get yourself out of debt and lead a more successful life.
1. Pay More Than the Minimum Monthly Payments
Take responsibility for your actions. If you are in Credit Card debt, then try your best to pay more than the minimum monthly payments requested by your Credit Card company. By making your payments this way, you will reduce the interest on those payments. If you make your minimum payment every month, it can take a very long time to settle your credit. If you need to take care of your debt rapidly, pay as much as you possibly can. Indeed, even an extra $30 every month will help. You might also need to get a second job to help with those payments.
2. Spend Less Than You Originally Plan To Spend
The majority of us have wishes and needs that are greater than our paycheques. You may have heard the familiar saying, “Hanging your basket where you are unable to reach it.” Many individuals stray into the red and continue to pay off debtors since they will continue to buy things that they might not necessarily need. Not even wealthy people will purchase all that they need. If you need something, don’t get it except if you have the cash. If you can survive without certain things, then you can avoid taking on unnecessary debt.
Another extraordinary method to implement is to pay with money instead of credit. A popular restaurant chain has discovered that individuals spent 56% more when they pay with credit instead of cash. Studies have indicated that individuals spend 100% more when they shop and use their Credit Cards. Regardless of whether your investment funds aren’t as extraordinary as this model, you can most likely observe my point. If you need to minimize your debt, leave the cards at home, use money, and don’t buy things with credit until you’ve settled your debt to an acceptable level.
3. Pay Off Your Higher Debts First
A simple strategy for clearing your debt is to identify the debt with the highest interest and channel a larger portion of your payments to that debt. You can now make minimum payments on all of the other smaller debt as the interest on them would not be so scary.
Once that most expensive debt has settled, direct all of that money to the next most higher interest debt. Repeat this tactic with all the other debt until you have completed your payments. I know this strategy will work because I tried it myself when I was also in debt. I can assure you that you will be relieved when you see the progress you have made. There are other methods that you can utilize, but you need to start somewhere.
4. Buy A Reliable Used Car Instead Of One On Credit
Instead of buying a brand new car on credit, you can buy a reliable used car for cash. This approach will help you to save money in the long run.
When you buy a brand new car, on credit or cash, that car will depreciate in just a couple of years. If you pay $20,000 for a new car now, in four years, that car might worth $14,000. You would be losing $6,000 in 4 years.
On the other hand, if you buy a reliable used car for way less than the price of a new one, then you will not be losing that much money when compared to the brand new car. Ensure that you get good advice from a reputable car dealer whenever you want to buy a used car. Once you are confident that you have all the necessary information to buy a used car, you can go ahead and make your purchase.
It is also a good idea to take a Qualified Mechanic with you so he/she can do the necessary checks on the car. That is just for your peace of mind. You can then keep this car for longer so that you will now be able to save some money for a new one which you might be able to buy for cash if you so desire. This approach will keep you out of debt for sure.
There is a lot more information out there on this topic. This article is just a tiny fraction of the information available for you to implement.
I desire that you will seek further advice from a qualified debt advisor if you need more information to move forward with this Debt management issue.
Thank you for taking the time to read this article. If you have benefited from the information shared, I would appreciate it if you could share it with others by hitting the share button below this article. Thank you in advance and all the best in the future.
This presentation is only for information and educational purposes. It should not be taken as absolute financial advice for any financial issues you might have. If you need financial and money management advice, please seek the help of a qualified Financial Advisor.