Mommy and LifeStyle blog By: EINz

Monday, March 19, 2018

Get Out of Credit Card Debt for Good in 5 Simple Ways


Getting out of Credit Card Debt and having control over your finances is something that can be done through discipline and careful planning. I know it sounds easy but a true struggle to actually maintain a spending habit without using a credit card. I must know based on my experience of how I took my baby steps on taking control over my financial habits.

Here's the 5 Simple Ways to get back on track:

This applies if you have Card 1, 2,3... to take care of. Take steps in paying off and getting out of credit card debt with any of the following method:
  • "Snowball" Method
Consider paying off your lowest balance first. Pay the monthly minimum payment for all the cards and focus all your extra cash to the one that has the lowest amount billed. In this case, you are able to paid off the card one by one by attacking the lowest amount first.
  • "Debt Avalanche" Method
This speaks of paying off the Card with the highest interest rate first. Pay the monthly minimum payment for all the cards and throw all your money to the one that has the highest interest. This method is the best to take when taking a longer debt payment timeline because it will allow you to save up more on interest charges.
  • "Highest Balance" first Method
       Paying the highest balance first regardless of interest. This gives you the satisfaction of taking care of the huge amount first by paying the minimum monthly payment for all the other cards and target the high amount flashing on the bill.

Before deciding what method to take, consider your personality and payment ability first that can help you identify which works best for your own paying-off plan.

Regardless, you are required to STOP using the cards that you are paying off to eventually get out of debt. For a smooth guide on the process, you can try Nationwide Debt Reduction Services to negotiate on all other options and be debt free in the shortest period time possible.

2. Track down expenses
Treat the card NOT as extra cash and record all expenses regardless of the amount spent. Easily track down unnecessary purchase and small purchases that adds up by keeping a record.

This is a good way to identify where to cut down and set up monthly budget by knowing where the money is going.


3. Avoid impulse buying
Apply a waiting time for a purchase that categorized as 'WANT'. The idea is to wait a little longer before making a purchase. The longer you go, the better. You might be surprised how you end up not buying those things that you can actually live without.

4. Stick to a Budget
This implies as simple as following the grocery list, and not spending more than you have. Make a habit of using CASH instead of your invisible money. Also, develop a dislike to overpriced items and live a simpler frugal life that makes it easier to build the discipline to save before spending.

5. Stop Making New Debts

This goes to NOT keeping your Credit Card in your wallet to avoid unnecessary purchase. Create a money saving strategy after debt reductions is fully settled. Don't hesitate to use a reasonable part of your savings to help you become debt-free so you can start fresh to challenging yourself every month to save.

Above all, INVEST in financial education to frequently remind yourself the importance of having finances under full control. This way you can easily think, reflect and apply on how to leave behind those financial burdens.

2 comments:

  1. Great tips! I wish I knew about these a long time ago though. Haha! No longer using credit cards now. I prefer just using debit cards instead.

    ReplyDelete
    Replies
    1. Wow! Congrats... as for me, I am still using the card for big purchases to take advantage of installment facility.

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