Debt is overwhelming. It’s easy to get into and extremely hard to get out of. You may be thinking, “but debtt buys us nice things like a house, vacations, food to keep in our bellies and clothes to keep us warm. So how can something that buys such good things be so bad?”
Utilizing debt for your benefit can help you if you use it wisely. It can also be your worst enemy if you misuse it. If you spend within your limits and keep your balances low, debt can help you build a solid credit score, but only if you pay it off. However, if you let outstanding balances linger, you could find yourself in financial ruin and paying high-interest charges.
The key to surviving debt is to stay focused on the end result of paying it off. Every little bit of effort puts you one step closer to your end goal of being debt free. It may not be any day soon, but with a little planning and a lot of discipline you can pay off your debt.
If your debt feels out of control use these four steps to get back on track:
There’s always a tomorrow, but tomorrow isn’t going to help get your balances be paid off. Talk to a credit counsellor today and let them help you make a personalized plan (that you can afford) to start on the journey towards paying off your credit. Asking for help from a professional is one of the best things you can do for your money.
Just Stop Spending
People get into debt for a variety of reasons, one of which is overspending. When you live beyond your means and don’t have the cold hard cash to pay for your lifestyle you end up using credit cards to live. That’s not good. Cut out your extra spending cold turkey, trust me it will only be painful for a few days.
Start Making Payments
You will truly be surprised by how much money you can save each week just by cutting out unnecessary expenses such as an expensive cable bill, magazines and daily trips to the coffee shop. Take all that extra money and immediately put it on all your credit accounts. Making the minimum monthly payments isn’t helping your balances get paid off so take every single extra cent you have and put it towards your credit cards and loans. You’ll pay off your balances a lot faster and save loads of money on interest charges.
Always Second Guess Yourself
Spending is just like any other type of addiction, you have to want to change in order to break the cycle. Taking the first step in changing your habits is just the beginning. Once you start making extra payments and see your balances getting lower each month, it will become your new addiction. You’ll want to save more money to put towards your credit cards and before you know it you’ll become debt free.
Doesn’t that sound great! Now all you need to do is take the first step and talk to a credit counsellor who can help evaluate your situation and get started on a repayment plan.
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Consumer Education Services, Inc. (CESI) is a non-profit service provider of comprehensive personal financial education and solutions for all life stages and for all of life’s milestones. Our goal is enhanced economic security for everyone we serve.
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