Credit Card Debt Relief Forever
“If you were not taught how to properly manage your credit cards it is not your fault, but now is the time to educate yourself. Unfortunately, credit card companies seek young college students who have very little income and the outcome is the over use of credit cards creating outstanding debt at an early age,” James Kelly, personal finance specialist.
Decreasing credit card debt is a topic never taught in school. A topic our families may have rarely discussed with us. Let’s explore. The first step to maintaining your credit card debt would be to find out what you are using your credit cards for? Record and calculate your credit card usage for about two weeks and you will be surprised. If you are using it to go on quick unnecessary non-budgeted trips to Jamaica, shoes you don’t need, dinner for one, bubble gum or just things cash would be more realistic for.you have a problem.
The next step would be to record and calculate what you spend your money on overall. Where’s your cash or credit card money going? What are your monthly, weekly and daily bills? How much is your breakfast, lunch and dinner? Do you spend more money on creating debt or paying off debt? What’s a need, and what is a want?
This experience may seem demoralizing and shocking for most of us. The first time I did this, I realized that I spent over $150 on food every week. I ate out almost three times a day and only paid the minimum on my credit cards which didn’t make sense. Once I did this exercise I realized that I needed to eat at home. I needed to go to the grocery store and stock up on food that fit my lifestyle. As a young single woman, I never had a great need to “feed” anyone so I would eat out. Now, I eat out once a day for lunch mainly when I’m working and with the extra money I pay more on my credit cards.
The idea for the exercise is not for you to “get an extra job” or “demand a raise on Monday.” It is to simply sit down and see how to re-position the money you make now. In the February 2005 issue of Black Enterprise a woman was highlighted for living off the salary she made in the 90’s. The woman received several raises since that time period and used the extra money to pay off debt, invest in real estate, etc.
Even if you only contribute 20 extra dollars to add to your credit card bills, it will still make a difference in the long run. And, paying down on credit card debt one penny at a time will make you feel better about your economic future.
Ideas to adopt:
– Evaluate what you use your credit cards for
– Stop using the cards for unnecessary expenditures
– Create a realistic budget
– Call all credit card companies and request a reduction on interest rate (threaten the
creditor by advising you are going to go to another credit card company with a
lower rate and hopefully they will work with you to keep your business)
– Focus on paying off the credit card with the highest interest rate first
– Maintain paying the minimum balances on all others
– Consult a professional credit repair service (credit card consolidation)
