Credit Card Debt Issues
Credit Card Debt Can Ruin Lives – Don’t Let It Ruin Yours
For many people personal finance means getting rid of their credit card debt.
The list of reasons as to why people have too much debt is an extremely long one and it is an impossible task to name them all here, but we can list a few and some of us reading this article can relate to one instance, or several, that are listed here:
* unemployment, (people do lose their jobs)
* medical expenses, (any one get suffer from accident or bad health)
* unforeseen expenses, (damage to property, medical bills, vehicle maintenance costs)
* far too much temptation, (over-spending)
Sadly, once a person is saddled with an excessive amount of debt there is no magic formula to get rid of it as quick as it was acquired.
The only solution, besides winning the lottery, is to beat it down over time.
However, if you are in this situation already, or you can see that you are heading in this direction, do not lose hope nor give up just yet because there are a few things you can do to help yourself.
The first step you need to take is to do something that you most probably should have done previously and that is to make a budget.
As obvious as this may sound, you need to figure out how to spend less than you make.
The main priority is to sort out the credit card debt that has the highest interest rates first. Read that again if necessary and make sure you can remember it, because it is extremely important.
Better yet, if you have more than one credit card, transfer your high interest debt into your low interest card account.
However, if you do have multiple credit cards, get rid of them.
Another method of attack would be to get the total all your credit card debt and then ask yourself how much you have to put to one side so that you could pay that debt off within 12 months.
If the figure you arrive at is too much for you to afford, then naturally
The object of this mathematical exercise is to get a visual on what you owe and to determine a goal that you can aim for.
You need to remember what you did to get yourself in to such a situation and even more importantly, be determined to never repeat whatever it was you did so that you can stay out of debt in the future.