Pay off card debt .. Do you feel like you are stuck in a routine that you can not get for credit card debt ? Every time you plan to pay off the debt, you unfortunately end up using the credit card again and thus result in more debt yet? Well, know that you’re not the only one, so do not let guilt take away your peace.
Read carefully the tips we will provide and put them into practice (no cheating), you can get out of credit card debt. That’s right, you can! It will be a bit difficult at first, but everything is for your own good. So, here are some tips to stop credit card debt .
Decrease all your daily debts
Sounds simple, right? It sounds easy too, however it’s easier said than done and many can get back on track again. So what do you ask?
First : Understand your finances clearly.
Second : write down all your debts to know exactly how much you owe.
Tip : If you mess with computers or know someone, make these notes on an Excel page.
While the numbers were just in his mind, they did not look so monstrous, but as soon as they were out of his head and into the roles, they might seem more frightening. However, do not worry, because you have successfully passed the first step.
Control incoming and outgoing incomes
As repetitive as it may sound, the most important of all is to understand how the flow of all your money works and how it is spent. So we advise you to also make a detailed list of these items.
Even if your income is restricted only to your monthly salary, or if there are other sources of income, such as rental income, a small business, among others, list it with as much detail as possible. Also write down all your fixed expenses such as online loans, vehicle financing, groceries, water, electricity, etc.
If your expenses are greater than your income, you will surely head for the financial destination. If not, then there is hope, very much indeed. Start by monitoring your expenses and try to save on every little thing you can, be it your lunch money, or taxi money, or even groceries.
Make a payment plan to clear your debt
Now that you have all your earnings and expenses listed, it’s time to set financial goals. Positives. But they should be realistic. You can start by fixing expiration dates for each of your credit cards. You can try clearing the debt of one card in 6 months and the second card within one year and so on.
So how do you do that? Well, list all your credit cards from one with the highest interest rate. You can start repaying your debt by paying the highest interest rate credit card fees , or those with the highest outstanding balance. If you start with the first, you will repay your debt more quickly.
Make sure you’re on the right path
Planning is important in order to pay off card debt without stress but not just just this, you should also implement it and keep a record. If you’re a little out of line, fine. However, make sure you readjust your goals accordingly. If you are reaching your financial goal of clearing your credit card debt as planned, then you are certainly on the right track.
Trade expensive debt for a cheaper one
Although economists and consultants keep saying that debt is debt, it’s no use, if you do not have enough money, you have to make a loan to pay off credit card debt, especially if the loans are cheaper than those charged on the card’s bill.
Alternatives to Paying Off Credit Card Debt
You can find online lending platforms that offer Crowdfunding, loans and Collective Financing and Peer to Peer Lending with interest rates of 5 to 10 times cheaper than the interest of the card. In addition to these alternatives you can get a payroll loan from your company or with a relative or friend.