Financial uncertainty happens. So, securing yourself financially is the only way to go.
Credit card debt is a doom when you’re right in the pit of paying off and no stable funds to cover the payment is available.
Here are some doable hacks to handle your credit card debt:
> Assess your credit card debt –You’ll never hit your target if you don’t know where it is, so be brutally honest with yourself. Create a record of our outstanding credit card debt and its interest rate of every card you use.
> Negotiate with good rates – Get in touch with your credit card company/s and negotiate with a lower interest rate. A simple phone call and a polite request may be all it takes. Each lender has an approach in handling such issues. Once you get the lower rate, write down your new interest rate and check on how much you will be saving.
> Make a record on all your expenses – Write down all regular, committed expenses (scheduled payments), and keep track of other variable expenses. This will be your foundation to your budget. You can assess where to cut back, cancel, or downgrade some of your services. Spread your monthly budget into weekly allotments to better handle your spending. Study up to a year’s worth of credit card bills and bank statements to get an accurate sense of your monthly spending, and keep tracking your expenses with a notebook or financial software.
> Opt for your payoff technique – First strategy, payoff the highest card that has the highest interest rate, while paying minimums on your other cards. Once paid with the highest, repeat the process on your other cards. Second strategy is, payoff your credit card with the lowest balance first while continuing to pay the minimums on the others. Once you choose your strategy, arrange cards in the order that you will want to payoff.
> Put away your plastic – Store your credit cards where you won’t have easy access to them — but don’t cancel them. Plan to pay in cash whenever possible.
> Look for motivation and support – Build concrete goals and be focused. Write down your goals and keep them in your wallet or purse. If you get tempted to overspend, take a look at them to remind yourself of the bigger picture. Find a community/group to swap stories, successes, and challenges. A forum where you can feel supported and finally say, “I can do it”!
> Keep track of your financial progress – While you abhor spending time everyday fretting over your bills, watch out on your spending. Put reminders in your calendar to check up on your finances. Keep the page with your starting balances, and compare them to check your progress.