The intention to pay off your credit card debts is there.
The challenge is gathering funds. Your income is just enough to suffice for your household’s needs. Sometimes, it even falls short. But you want so bad to finally achieve financial freedom and redeem yourself from bad credit record due to missed payments.
Keep faith you can pay off your debts.
Let us talk about realistic ways to controlling credit card debts. Here are few of them.
Stick to a budget.
This one has been told countless times only because it is that helpful.
Live within your means.
The simple act of using your credit card unless it is for life and death matters is already an indication you are going beyond what you can afford. It certainly is a bad idea to swipe here and there when you are already struggling to zero out your credit.
Separate wants from needs. Just because it is discounted does not make it a wise buy. Even when an item is on sale, it still does not qualify as a necessity if you only want it.
Postpone upgrading your phone or any gadget for that matter if you can manage with the one you currently have. Take a break from shopping for clothes and shoes if you already have a ton, with some you are even yet to wear.
Study the possibility of consolidating debts.
Look into the possibility of consolidating debts or transferring them all to a card that charges the lowest interest rate.
Think carefully though as the bank is likely to charge fees as well for the process to push through.
Consolidating debts will help you track your dues faster than when you are looking into several cards with varying due dates, minimum payment and interest rates.
Then again, study your situation first before making any move.
Analyze debts and decide which to prioritize.
Pay more than the minimum. Sticking to the minimum shall only drag your recovery process longer. You are religiously paying every month but your debts does not seem to lessen.
Review your account statement. Check which card charges the highest interest rate and consider paying it off first. You can afterward settle the second highest charging and the list goes on.
The downside however with this strategy called the snowball approach is that you might find sustaining the habit difficult.
Either way, it depends which means you can commit yourself to. Another option is to put first those with low interest rates.
Save up on emergency funds.
So you are you planning to switching employers anytime soon.
You might want to look at your savings and of course your credit card debts before doing so.
Looking for a job isn’t easy. You probably have heard people suggest that you resign only when you’ve found a replacement (and are sure about it). This way, you will not have to spend months growing expenses without expecting any income.
You can always tender your resignation before you start looking for a new employer. But this doesn’t come without risks. You need money, which you can use for your expenses.
It takes time saving funds though. You need at least nine months worth of your living expenses. And you should be able to gather this amount while striving to pay off your credit card debts.
The good thing about making it through this tip successfully is that you prevent further credit card usage. You have money to use for immediate purchases. You need not rely on your credit card.
Build support system.
No, we’re not talking about looking for someone who can lend you money.
You need the support of your loved ones during tough times like this. Do not be shy to talk to them when you feel you’re in trouble.
They might be able to offer you assistance negotiating with your bank how you can pay off your debts. Or they might be able to refer you to people, who in turn can direct you to programs or organizations that provide help managing finances.
You need not go through it alone.
Nettie Gray still remembers the time she was forced to use her entire paycheck to pay for her credit card dues. Since then, she vowed to tame her inner shopaholic, and be more critical with her purchases.