If you use credit cards debt can feel overwhelming. The average American has a monthly household credit card debt of about $4,500 a month. It could feel like a losing battle when it comes to attacking your credit card debt, but you can do this. Here are 8 Steps to attack your debt:
1. Change you're spending patterns
Recognize your spending behavior. Take a look at your credit card bill. Most credit card companies itemize your spending into categories such as food, gas, entertainment, etc. This is a good place to start and you can recognize your habitual spending can be cut back. For most people dining out is usually a huge one.
2. Prioritize your obligations
Everyone knows about how much debt they are in, but if you actually sit down and itemize them by amounts this can bring in some closure and will help you realize the actual dollars and cents your obligations come down to. At this stage, you should organize your obligations by balances and interest rates. Taking time to do these small things can help you derive a plan of attack instead of just simply continuing to do that same thing month to month and never seeing any positive outcomes.
3. negotiate your obligations and look for lower APR’s
If you find your self-paying several cards transferring them to lower APR’s can help, Also try talking to your company cards and asking if there is any way there can be granted some relief you can pay a certain percentage of your obligations.
4. You may have some accounts that can help you
You may have forgotten about accounts that you have lying around, instead of assets that are just sitting there these assets can be used to help pay down your debt, use anything you got to attack your obligations with great effort.
5. Programs to help you pay down debt
There are programs like ours that help individuals and families help pay down debt and save them a tremendous amount of interest. Look for a reputable firm that can assist you in this area, sometimes people need a little help when it comes to being disciplined at your obligations before they spin out of control.
6. Look at different strategies
There are many ways to go about knocking out your debt, some strategies will work for others. Another way you can do this is attacking one card with all your focus while you pay the minimum on the rest of them, I know this sounds counter-intuitive but trying.
7. Attack your large debt into smaller chunks
Looking at your debt can have an overwhelming feeling. Having a different plan of attack can change that feeling. How about breaking your obligations into smaller tolerable chunks that are manageable, If your current plan of attack is unmanageable breaking it down into this strategy can help you see some immediate progress. Try using a calendar to set weekly, monthly, and quarterly targets, goals and milestones. There are also resources out there that can help you such as a Debt Calculator that can help calculate when you can be debt free.
8. Put away your credit cards
Once you get your self out of debt or once you are finishing up on your last obligations put your credit cards away. Yes, there will be unplanned situations where you will find your self-compromised again, but this time set some stipulations on your self. Correct that reflex that you have to instantly pull out your credit cards. Hopefully, at this point, you have started an emergency fund. Change your thinking that everything is an emergency and that you have to pull out the credit card. Break those bad habits. Another thing you can do is figure out how much you will actually pay in interest before you used that card again.
Attacking your obligations with a vengeance takes great effort. If you feel like your not making any progress feel free to reach out to us. We help families and individuals with their financial situations. If you live in the greater Austin area contact us today!
Rene Gonzales
Senior Representative
c. 512-568-7203
e. Rene.Gonzales@Primerica.com
w. www.Primerica.com/ReneGonzales
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