Credit card debts can seem like a ball of a rubber bands. When you put on a few, the ball is not large. But once you add layer about layer, the rubber bands in this case your card debit starts adding up.
Don’t throw up your hands or give up, you will be in credit card debit for ever. You do not have to be and you won’t if you establish realistic Expectations and a timeline, that is not so stringent, and makes you focus on the goal.
Commitment to paying more than minimum
Credit card companies will put the amount of time it will take you to pay off your credit card if the minimum balance is paid. Usually, let us assume that you owe $3,000 on a credit card with an interest rate of 17%, and that you pay minimum 3% payment of $25, you will pay off your Debt in 126 months, which is approximately more than 10 years. But if you had paid an extra 20 to $25, each month, you would have cut short the time by nearly half.
A small amount can make a big difference. Committing to pay what you can even if it is an extra 15 to $25, you can cut your credit card cause and make you feel as if your working towards something. Freedom from credit card that is important.
Focus on small victories
There are two schools of thought the with regarding the best way to pay off your credit card debt. To pay off the card with the highest interest rate, so that you don’t lose as much as money in the interest. The second one is to pay off the credit card with the lowest balance first.
The benefits of this approach is two fold. First you have a credit card that you have successfully paid off. And this will boost your confidence to pay off the additional credit card debt. Secondly that you are, you might be able to use the money you are paying for low balance credit card towards your remaining credit card. Keeping the momentum going you can and will pay the credit card debt completely.
Avoid impulse purchases
Everyone been there at some point. You might find yourself standing in a store surrounded by Shiny packing, with a set of irresistible items. Before you know it you are headed for the checkout counter the credit card in hand,. Think twice. Make that long truck from display rack to checkout counter ask yourself some important questions.
Will the product in hand make your life better, or will it just lighten your wallet? What need does the product serve? Will it solve real problem in life or just an illusionary one? To answer these questions how smart a strategey we can employ, we need to figure how.
Impose a mandatory waiting period
Many states impose a mandatory cooling off period for Major purchases, and you can do this the same way for your own life. If a sales person comes to home to sell something you can have it up for 3 days to change your mind and cancel the purchase. That’s a good law to protect you from impulse buys.
Adopting the same strategy can protect you from impulse buys made outside the home. The next time you find yourself drawn towards sign in your object and heading for a register take a deep breath and step back. Please item back on the shelf and impose your own 3 day waiting.. If you didn’t you require the product after 3 days, it is worth what you have saved.
Think in terms of hours worked
He pays off to think those you have work to earn that $1 when you are deciding for an impulse purchase. This is a simple strategy which can stop you from overspending and buying things which you don’t need.
That sign in your smartphone worth 60 hours of hard work? Are you willing to work 20 hours for a new pair of shoes? When you see this in light many impulse purchases becomes less attractive.
Look for trade-offs everywhere
Not all impulse purchases are bad. And sometimes when you decide that the product is worth it after waiting through your self imposed cooling off period, calculating the number of hours you might need to work, you would have decided the purchase is a wise one and ready to go forward.
Before you put your money down from your credit card, look for the offsets in your budget and adjustments that you make to stay on the financial khel. It is simply in terms of barter. Is that new smartphone worth giving out take out pizza for 6 months, or giving up dinner out with next 3? are you willing to seekout generic when you go for grocery stores and put a savings towards paying off your new purchase? This trade-offs can make you purchase more affordable and strengthen your budget skills.
Impulse purchases can ake a toll on the budget how to fall a victim of their marketing charms. If you know what steps to take and how to shop wisely you can take back control of the finances, and spend money on things that you truly need. Good luck managing your credit card debts.