Don’t wait as long as I did to face your financial reality.
I’ll admit it: I am one of those people who has used a credit card to pay off another credit card. At that time, I was living my life worry free, making money and having fun. Anytime a friend said, “Let’s go out of town for the weekend,” I happily went along, regardless of my budget.
This led to more and more debt, which I continued to ignore, hoping it would take care of itself. The turning point for me was finally having the courage to look at my financial reality. But I was $187,000 in debt before I got to that point.
Don’t wait as long as I did. Whatever debt you’ve accumulated, it’s possible to change your credit card habits, provided you’re willing to be aware of your finances. Here’s how:
Look at the Numbers
To start, gather all your credit card statements and calculate the total amount you owe. Now, divide it by 12 for the whole year. Look at that figure. Is it possible for you to actually make a payment of that amount each month after subtracting your living expenses and any other debts?
If that seems impossibly high, then you’re living beyond your means – with the help of credit cards. Now, divide that number into 24, or even 36, giving yourself two or three years to pay off the debt.
Still not doable? Then commit to paying a small amount each month to your balance, even if it’s just $20. And in the meantime, stop using your credit cards until you get to a place where you are able to pay off the entire balance in full each month. To change your habits, you’ve got to make some different choices.
Stop Playing Into the Drama
Credit card debt is the highest it’s ever been in U.S. history, and everyone seems to have a horror story to tell. Well, it’s time to stop listening to your own trauma and drama and start looking at what actions you can take. At one point I had three different jobs, rather than sit and complain to my friends and family about my debt.
Anytime someone offered me paying work, I took it. Some jobs I loved; some I hated. Some were really slow. None of it mattered. I was constantly looking for what else I could do to make more money and put a dent into my debt.
Start Some New Habits
We’re taught that the value of money is spending it or saving it to spend later…
To read the full article as featured on Daily Worth and get three more tips to take control of your credit card habits from Simone go HERE
To learn more about Simone, read her Full Bio HERE