Many people love to shop. When things are on sale, people go after them, and in bulk! Lets not leave out store credit cards that store representatives practically poke you with right before you’re about to pay for your purchase. In speaking of credit cards, what’s one word that comes to mind when you think of credit cards? Debt is the answer, but not the solution to your financial issues. You’ve probably heard of a couple of frightening stories or more about your friends, relatives, or others being in debt. Debt isn’t something that can’t be taken care of. For starters, you need to recognize how much debt that you’re in.
Discover How Deep The Rabbit Hole Is
Sit down and reassess yourself. Know and embrace the fact that you may have a big problem on your hands. As much as you may not want to do this, it must be done. Gather all credit card and loan statements and other bills. Add up everything to determine an outstanding total of what you owe. This is so that whenever you gradually chomp away at the total debt, you’ll know what’s left.
Pay In Cash
The safest and most secure way of guaranteeing purchases is by paying in cash. Although just swiping a card through a reader is more convenient, that’s what got you in debt the first place! You don’t have to get rid of every single credit card that you own. Have at least one handy, or two (depending on your financial situation). If you’re able to manage two, then have one regular credit card and one store credit card for your favorite store.
Now that you’re aware of how deep you went, it’s time to climb out of that hole. Take one step at a time. Maintain willpower all the while. Keep in mind that debt can be dealt with. It’s a step-by-step process, really. First, pay off credit cards and loans with the highest interest rates. Taking care of the big ones will save you a significant amount of trouble down the path of being debt free. Best to get those out of the way anyhow. Better yet, if creditors contact you in regards to a loan, credit statement, or bill, then respond in a friendly and calm manner.
Try to negotiate with them in your favor. Having a nice and approachable attitude over the phone or email may result in extra fees being dropped, having lower interest rates, and the like. To help pay off your debt, cut off extra expenditures that you rarely use or don’t need at all, such as cable or monthly subscriptions. After you become a proud member of the debt free club, maintain a manageable (and realistic) budget. Doing so may help you iron out further unnecessary spending. Keep track of your spending on a bi-weekly (best) or monthly basis.