To this day many people many people are trapped in a credit card debt and do not know how to get out. For some it becomes a habit and they are constantly coming and going. It is a good practice to buy only that for which you have money, and not to spend the money that you will earn tomorrow in the luxuries of today. It is also wise to keep your credit rating high, so you can use it if you need a loan in the future. Here are 8 steps to break the habit and act financially smart.
Leave it aside
The most obvious step is to stop using it. The fact that you are tempted to buy things for which you do not have cash, is because you have a credit card. Advertisers take advantage of this fact and appear with lucrative offers for credit cards. The merchants sell their products and services, the banks get their interests and the users do not take anything except a big hole in their pocket. Those who have suffered enough or are easily influenced should stop using their credit cards immediately. The world still works without them, so keep them locked and do not look for them again.
Pay less interest
When you delay making the payments of the credit card, you have to pay interest on the amount. Different companies offer different rates and there is a big difference when the amount to pay is a little higher. Always try to have the card with the lowest interest rates. Some banks will also consider your request to reduce the interest rate, depending on your credit history and the competition they have.
The minimum payment option
There is an option whereby a quantity is transferred directly to satisfy the bills of your credit card. If you pay this minimum amount, you will not be charged any fee later. This is especially good if you know how much your expenses will be, such as a monthly payment. The remaining balance is retained to pay the bills for the following month.
The way to pay less, is that as long as you can pay more. Whenever possible pay a little more to sustain the negative balance. This way you will feel free when you use the credit card next time. Choose the card with the highest interest and pay a small extra.
Use a friend
If you have a friend with whom you can compare your progress, nothing better than that. You will both set goals together and try to beat the other. It will become like a game in which you take the situation easily and without feeling bad. Having company helps you not feel guilty and keeps you focused.
Once you have established your goal of getting out of debt, it is important that you track your progress. A great goal can surpass you and you must divide it into small monthly objectives. These objectives must be realistic, so that you feel motivated until you reach the final goal.
Avoid guilt and stay motivated
This is the most important step because you also need to be disciplined. Read stories of people who have succeeded in life and believe you can get out of debt if you propose. Be prepared to make the necessary changes in your attitude and your lifestyle. With a positive attitude, all things are possible.
Cut your expenses
The majority of credit card debts in the world are due to people who tend to spend more money through their card than they actually have. The money will not appear in your account one day magically and, therefore, it is better to spend wisely and buy only what you can afford. Some things in which you can reduce your expenses are entertainment, meals away from home, alcohol, clothes, etc.