Tips on How You Can Reduce Your Credit Card Debt
??????I know it’s an old cliche, but do you feel like your drowning in debt and there’s no rescue in sight? Well, you’re not alone. In fact, having credit card debt is more common today than being debt free. It is possible to get out of credit card debt, and to stay out of debt. Here are a few tips that you can use as a life line.
Did you know that debt management and reduction is a huge money-making industry? Ironic, isn’t it? But that’s something you need to keep in mind. Yes, there are some non-profit organizations out there that can help you get out of debt, but there are a lot of others who are definitely in the business to make a profit-at your expense!
Before turning to a debt management organization for help, I recommend you try to get yourself out of debt on your own. The first step you’ll want to take is to examine your spending habits.
Ask almost anyone who is in debt and they will tell you they live paycheck-to-paycheck, barely getting by, and they don’t have any money left over to spend on unnecessary items. They’ll say that, but it usually isn’t true.
In fact, if you track every penny you spend for a month, you may be surprised at how much “extra” money you can find. What about that coffee you bought the other morning on your way to work? The check out stand in the grocery store is another place where it’s easy to spend money. The store knows this, that’s why they put all of those small, inexpensive items right where you have to stand and stare at them while you are waiting for your turn. Most people, when they are honest, find that they spend a good deal of money on impulse items throughout the month.
Am I suggesting you deprive yourself of the simple pleasures in life? No. I just want you to be aware, and honest, so that you can make an educated decision about whether to spend that money, apply it to your credit card debt, or put it into savings.
Now that you know where your money is going, you need to set up a budget to tell it where you want it to go. Think of a budget like a dam. Instead of just letting your money flow away, a budget will help you to hang onto it and redirect it to where you want it to go-which, hopefully, will be getting out of debt.
Another place to find extra money to apply to paying off your credit card debt is in your garage. How many of us have boxes of stuff stored in our garages that we haven’t used or even looked at in years? Do you even remember what’s in all of those boxes? Why not have a garage sale?
I recently heard a statistic that said the average American household has $2,000 worth of garage sale merchandise they can sell. Now that ought to make a dent in your credit card debt!
If you are so deep in debt that $2,000 won’t make a difference, you should consider trying to negotiate a better deal with your credit card companies. The problem is, when you first got that credit card, the interest rate was probably low. But with missed or late payments, your interest rate has probably inched higher and higher until you may be paying almost 30% interest!
If that’s the case, it could take you a very long time to get out of debt. But, here’s a little known secret: your credit car company wants something that you have-your money. They can keep their interest rates high and refuse to negotiate with you, but they may run the risk of forcing you into bankruptcy and never having your bill paid. What does it all mean? It means they are probably willing to make a deal. Many times a credit card company will lower the interest rate, remove fees, and even accept a lower amount if you are willing to make a lump sum payment.
Getting out of debt isn’t always easy. But, by getting a grip on your spending and sticking to a realistic budget, you may very well find that you are no longer up a creek without a paddle! You can get out of debt and stay out of debt if you are willing to make a few sacrifices now for a brighter future.
My name is Cheree Miller. I’m not a financial counselor or legal advisor. In fact, I’ve made some poor choices in my life. I’ve been broke, with creditors calling, writing, and sending court summons. I’ve had my bank account garnished and wondered how I was going to feed my family. But, I can tell you that you can learn to make good choices where your money is concerned. You can get out of debt if you remain focused on the end goal instead of wallowing around in a pity pool feeling sorry for yourself. Better yet, you can retire rich if you start saving for your retirement now!
