| Money is tight for a lot of people, and most of us are forced to live paycheck to paycheck. We also tend to rely on things like credit cards to get us by. This has led to staggering amounts of debt for thousands of people. Credit card debt is one of the primary forms of debt in America because of this. So if you are one of the people in debt, you know how stressful it can be and how much you wish you could claw your way out.
Dealing with all the Credit Card Fees, the endless phone calls from your creditors, the stress of knowing that most of you money is going to just paying off these things, all the while forcing you to continue use them. It is a vicious cycle that can be exceptionally difficult to break.
But while it is difficult to break, it is by no means impossible. In fact there are some fairly simple tips you can use to slowly pull yourself out of the hole of credit card debt.
The first step in getting out of debt is to create a budget. Look at how much money you get every month, then look at how much money you spend every month. If you sit down and look over your expenses, I am sure you will notice a lot of frivolous things that you can cut out to help yourself with those Credit Card Fees. Something as simple as getting a coffee in the morning can really add up.
If you can cut down these unnecessary expenses, you can then take that extra money and apply it to your debt. It may be tempting to throw it at your largest debt first, but this is the wrong move. We need our little victories, and it is also a snowball effect. So if you have multiple credit cards and are in debt with each, look at the one with the least amount of debt.
If you take that money you are saving and put it all towards paying off the lowest credit card, you can make some serious progress and actually pay it off quite quickly. This will give you that victory you need, it will boost your morale as you can see you really can claw your way out.
But that is only the beginning. From there you will want to apply, not only the money you had been saving by cutting back on unnecessary expenses, but also the money you are saving by not having to make payments on that credit card. Now you will have a lot more money every month that you can apply to the next lowest debt.
It is a rinse and repeat process from here on out. You just take the money you save by paying off a card and apply it to the next highest one. It will take a long time to knock out those Credit Card Fees if you are deep in debt, and you may need to do some extra work to get there. But by utilizing this method you can make some serious headway in your fight against your debt. |