We all know the feeling: The bills are piling up, but you’re so far behind, you can’t bear to open them, or be afraid to. When you do, you realize there’s only enough in your account or on your paycheck to make the minimum payments. Waking up in the morning thinking what’s going to happen at work. Am I going to be laded off, or is going to be a down size at the office.
As we watch on TV (News) Unemployment raises up every day, trust me it is a not a feeling to start the day. The average American family is now carrying between $8,000 and $9,000 in credit card debt alone. We owe more on our homes, cars, and educations than any previous generation has. A lot of people will say they’ve got a certain amount of debt — $9,000, let’s say when in reality, it’s $11,000 or $14,000.” You’ll never hit your target if you don’t know where it is, so be brutally honest with yourself. Most of us did not get a pay increase from a long time, and some did not receive at all. Here are few tips that every one of us can try and would not cost anything. Start with paper a pencil, write down all the credit card debts, Utility’s bills, Transportation,(auto loans)Beauty Salon, Eating out expenses, weekly Grocery’s shopping etc., etc.
Remember Rich people get Richer by counting every penny that goes In and Out:
Create a Budget. It is time to take an ax to most of these bills, (Make some Sacrifice) you don’t have to eat bread and water “cutting back is more effective than cutting out”. With a good Structure Disciplined you can get out of debt very quickly. The cards with the heights level of debt and Interest are the ones that need to go first.
Get on the phone, call costumer services ask if is anything they can do to lower you interest rate at least half, whit these recession almost every one achieve that goal.
Check your credit score, and keep in mined that low score may influence at the high interest you paying now, anything below 660 or low is considered low for the Credit companies, and it needs to be improved.
Utilize some computers software by keeping track of all your expenses; track every penny in an out.
Do not utilize any saving that you have accumulated on 401k, or retirement plan (you did not had those intentions from the day you started).
There is two ways, to pay credit cards debts. I found out that this was the best way to get rid off the debts.
#1 Pay the cards with the lowest balance, and continue paying minimum on the others.
Though this is not the most cost effective way to be done with your debt, it’s the fastest way to eliminate debt on a single card, and it can be a psychological boost to eliminate a bill for good.
#2 Use all the extra Cash, into the highest interest cards and keep paying the minimum on the others. Once the first high interest cards are paid, you’ll have, more extra Cash (your creating a snowball affect).
Store every single Credit Card where is Almost Impossible to access, Don’t Cancel, pay cash whenever is possible. (This is Sal Antonacci philosophy “if you don’t need it, doesn’t buy).
Track your progress every month. Be disciplined and responsible on your finances, and at the end of all this you will be.
Free of Stress, Debts, & Headaches!