Ways To Avoid Sinking In Credit Card Debts

More young people are into taking credit cards these days. From when they reach 16 years old they start flooding banks applying for credit cards with only but the basic knowledge on how to use them. Most people start by using their card responsibly and for important things only. As time goes by, more responsibilities weigh down on them, meaning more reliance on the same card.

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Between their teens and marriage life, young people of today end up having such a huge accrued debt due to financial irresponsibility. The society can be blamed for not properly educating these people on the dangers of over reliance on plastic money. Since it is already water under the bridge, how do you deal with your debt?

a) Analyze

This is where you know you are failing on your credit card payment and you need to address it. Analysis of your financial responsibility status involves a few things. These are:

• Knowing your debt. This is achieved by writing down a list of all your credit cards and all the money due. It helps you in assessing your debts.

• After writing the list you need to arrange the debts from the ones with the highest interest all the way to the ones with the lowest interest.

b) Strategize

Just like a sport, you need to know how to attack your opponents. Remember if you fail to plan, you plan to fail and since failure is not an option when it comes to debts, you simply need to get going. Strategy basically means you looking at any extra money you make. You need to tighten your budget and work on saving more than you spend. Start by getting rid of any unnecessary things that could be eating up your money. Use your savings to pay of the card debts with the highest interest rate while paying the minimum on the other cards. There are several ways you can save your money.

• Saving on fuel costs. Look at the money you use to fuel your car and public transport. If taking a bus is cheaper than driving around in your personal car, then opt for it for a few months.

• Carrying homemade lunch for your office would be a better idea than going out for lunch in a restaurant.

• Reducing your expenditure on house hold goods is also a good thing to do. Minimise on impulse buying.

• Stop accruing more debt by using the credit card with the least interest if you have to.

c) Prevent

It might take you a few months to clear your debt but once you do, prevent it from happening again. This can be done through reducing the number of credit cards you own and being more responsible. Make sure you learn from your mistakes and you are assured you will not get into credit card debt again.