Just The Facts
According to The Motley Fool, over 45% of Americans have a credit card balance and the average balance per household is almost $16,000!
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The biggest reason for divorce involves money problems. If not divorce, money will cause marriage stress. The stress from money problems also causes problems in sleeping and other physical ailments.
Your Money Goal
What is your money goal? Do you want zero credit card debt, an emergency fund, retirement savings, no mortgage, less stress, fewer money fights? Whatever your goals are, write them down and post them several places such as the refrigerator and bathroom mirror. Keep them in sight.
Credit Card Debt
Focus on eliminating your credit card balances. Here are 9 tips to get out of credit card debt:
- Get everything on paper or in a spreadsheet. Record every credit card, the balance, interest rate and minimum payment. This may be an unpleasant task, but it is necessary. Then add all monthly bills to get an idea of your total debt.
- Make a plan. Create a household budget so you know what funds you have available for debt reduction. Cut things as much as you can, such as no eating out, and use that money for card payments.
- Use any extra cash each month to pay on the card balance with the highest interest rate. As the cards get paid off, continue to the next highest interest rate and so on. Roll the amount used for the cards already paid, into the one you are currently concentrating on. Another thought is to pay off the lowest balance card first. That will give a feeling of accomplishment. Just use some organized plan.
- STOP using your cards. You will spend less if paying with cash and this will also stop adding to your balances.
- See if you can negotiate a lower interest rate. Call each card company and see if they will lower your rate.
- Consider consolidating your debt into one payment, with a lower interest rate.
- Once a card is paid do not use it! Put it somewhere safe, but don’t close the account.
- Be sure you make at least minimum payments on all your debts.
- Get help if you need it. Check out DaveRamsey.com, SuzeOrman.com or another reputable money manager.
Other Things To Think About
Spend Less Than You Make!
This is a very obvious statement, but one so many of us need to hear. Easy to say but often hard to do.
This is the only way you can pay debt and start to save! It does not matter how much money you earn. If you spend more than you make, you will never get ahead.
Get a PDF download of 55 ways to save money here.
.If you spend more than you make, you will never get ahead. #SaveMoney #LiveThrifty Share on X
Budget
You HAVE TO make and use a household budget. Everything you spend needs to be accounted for in your budget. This means everything. Keep a small notebook with you and record all purchases, then transfer them to your budget spreadsheet.
Make Extra Money
If you own something you are making payments on and can do without – sell it. A boat and camper are good examples. When you need a new vehicle, don’t buy new and avoid the instant depreciation. Purchase a good used car.
Get a second job. This could be an online job or other home-based business. If you work for hourly pay, request overtime.
Sell stuff on eBay, Decluttr, LetGo, Craigslist or have a garage sale.
Long-term Commitment
Learning to be thrifty and frugal is a lifetime decision. It is the only way to keep from getting into a debt-mess again. Keep your goals in mind even after paying all your credit card debt. Then make a plan to be mortgage free, have retirement savings, etc.
Getting out of debt takes time and determination. Stick with it and you will reap the benefits. Ignoring your debt will not make it go away!
Final Thoughts
A couple of things to remember.
- Being frugal and living on a budget requires both you and your spouse to be on the same page.
- Don’t compare yourself to others. Be happy with what you have.
This is not theory or spin – my husband and I have no credit card debt! It took some time and a lot of sacrifices, but it was so totally worth it. We now have an emergency fund and also working on retirement savings. We have a detailed strict budget and we stick to it. Things were not always this good 🙂 but we are now in the position to make large dents into our mortgage. One day in the not too distant future, we plan to own our home.
Now, start on your credit card freedom program!
Janet
Are You Ready To Get On The Budget Train For 2019?
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