Never be in Credit Card Debt

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Never be in Credit Card Debt

Personally, I try never to buy anything unless I have the guaranteed money for it to pay at least by the end of the month. I was amazed to learn that many people just ignore their debt and let it accumulate. This also has become an issue nowadays during the economic turndown. If you don’t pay your credit card on a timely manner, you need to bear more expenses, where you need to pay many additional charges such as late payment charge, over credit limit charge and finance charge. All these charges will accrue on your balance in addition to your existing fees and interest rates. The longer you drag to pay, the more debt you need to bear. Furthermore, when you quit or postpone paying your debt, banks may take legal action against you. Too much drama for a simple laziness, I’d say.

Now I understand that there are always exceptions where you just can’t afford to pay off your debt on a timely manner. Your husband is out of job, you have student loans, you are getting a divorce, or you are a single mom. But more often we simply get into debt by spending more than we are making on things like clothing, nights out, eating out, drinking, cabs and health expenses.

Here are some tips from real women, on how they got out of debt in a short period of time:

– Stay with family for a few months to avoid paying rent

– Move to a smaller apartment or rent a room in a house

– Sell your old car and use public transportation until you are debt-free

– Pay your debt in long period of time through the snowball method; paying off the smallest balance first and then the next smallest and so on.

– Move to a less desirable neighborhood

– Cut cable

– Limit data on your phone

– Track all your spending

– Get a Christmas gift from your parents

– Read a book on getting out of debt and stick to it

– Avoid taking vacations and cut back on “fun” spending

– Make multiple payments per month, regardless of the bill’s due date

– Get creative: Get a second job to increase your income! Wait tables, deliver pizza, freelance, babysit, participate in focus groups, clean houses, walk dogs—whatever it takes to get debt-free!