Although television advertisements may claim differently, you do not need to hire an outside source to manage or consolidate your credit card debt. Spending your money wisely and strategic planning of credit card payments can save you a lot of money and stress. Implementing several simple practices can help you to pay off debt and reduce future spending.
Budget Yourself
Figure out exactly how much money you have to spend per week or month. Itemize a list of things you know you need and estimate how much you spend on them. Once you have compiled an appropriate list free of unnecessary items, stick with it. Keep a list of everything you buy within a month. At the end of the month, if you have not stuck to your budget, look back at the list of everything you purchased and decide if these things were necessary. Often, you find you can go without much of what you purchase.
No Charging
If you can't pay cash for it, try not to buy it. Unless there is an emergency, such as a necessary household appliance breaking or a part for your car, do not charge items or services. If you must replace a household item, buy refurbished items. Many of these items are backed by a warranty and could last nearly as long as a new product. Visit your local thrift store to see if you can find what you need in working used condition. Paying with cash prevents you from overspending. Charging new items is so easy that deals in town are often not sought after.
Stick to the Basics
Although there may be a cute new outfit at your favorite shop or a new DVD you feel you must own, save your money instead. You will be surprised to see how quickly your saved money adds up when you only purchase the basic necessities that you need, such as food, toiletries, household items and gas. Apply all the money you saved toward your credit card debt.
Concentrate on One at a Time
Rather than giving a few extra dollars to every credit card bill that you have, find out which card has the highest interest rate and put all your excess cash toward that bill. If you concentrate on just one credit card at a time, it does not seem as overwhelming. Once this credit card is paid off, apply the extra money toward another credit card. You will feel relieved with how much progress you make toward becoming debt free.
0 comments:
Post a Comment