While working on this post, I’ll give you permission to picture me on my computer thinking about Rebecca Bloomwood, the female protagonist in the movie Confessions of a Shopaholic, and her addiction to impulse shopping.
It’s cool to look good every time, but having to purchase everything on credit, especially on a whim, is way NOT cool.
So as promised, here are some credit card debt management strategies you might consider putting to good use.
1. Admit there is a problem. This can be the daunting first step, but failing to give debt trouble the respect it deserves has the capacity to ruin a person’s financial life. And once you’re past that hurdle, commit yourself to pay off your debt as soon as possible.
Commitment is what would keep you plowing your way towards your goal in good times and in bad.
Recommended reading: Are You Financially Literate?
2. Cut up – yes, literally – your credit cards, with the possible exception of one for emergencies. That, to borrow Eduardo Roberto Jr.’s words, is called “plastic surgery.” Cutting them up would mean once you have successfully paid off all your debt, there’s a good chance you won’t fall into the trap of doing the same mistake over again.
3. Pay more than the minimum required every month. If you have, say, 5,000 pesos worth of credit card debt at 18% interest and you only pay off the minimum, it will take you about 30 years to pay it off. Shocking, huh?
4. Prioritize debt. If you have several credit cards, pay off the company with the lowest interest rate as fast as you can. After paying off the first card, work on the second until you pay everything off.
5. Go on a spending diet. Limit the time you spend at the mall. Eat out less. Bring your own lunches to work. Find ways to spend less and have more money to pay down debt.
Recommended reading: Budget 101: Track Your Expenses
6. Make full use of bonuses and/or pay raises to pay off debt.
7. Educate yourself on everything you need to know about credit cards – fees, how you are charged, grace period, the works. If you really need to keep a credit card, negotiate for yourself the best possible interest, even if that would mean switching credit cards every once in a while.
8. If you’re having trouble doing this on your own, talk with your bank and/or credit card companies about debt restructuring.
9. Resolve to never let this happen to you again. The moment your debts had all been paid off, start working on your financial future.
10. Stay positive. Keep a happy disposition. Forgive yourself and learn from your mistakes.
“The only man who sticks closer to you in adversity than a friend is a creditor.”- Anonymous
Latest posts by Maricel Rivera (see all)
- Creating a Working Environment in the Home - October 4, 2013
- Time Management is Life Management: When Life Gets Inundated by Time - June 16, 2013
- Speed Writing Is Not Rocket Science, Or Is It? - June 9, 2013