High rates of credit card debts—Strategies to stay out of debt
7th August: Credit card borrowing has touched new highs thus adding to the woes of credit card users.
The burden of debt is quite stressful. It needs to be curtailed at the earliest.
Credit card debt–As per recent figures, credit card debt in the US has witnessed a steep hike of 20 percent over the last years. And this has taken the amount of outstanding loans to as much as $70 billion.
<blockquote>So, taking a serious view of the situation, it’s high time we use ways to help stay out of the menace of credit card debt.</blockquote>
Let us see how to control and discourage credit card debts—
- Cut unnecessary expenditure—Take control of all unnecessary expenditure. Take care to cut back on expenses like subscribing to magazines or publications, eating out etc.
- Keep a note—It is best to keep a note or track of all your expenses. This will help you in restraining your overspending.
- Categorize—Nothing is better to control your growing credit card debt if you take little extra time to make a category of your expenditure every month. Its simple. Just note your expenses as ‘must haves’, and ‘like to have’. Although expenses for things under ‘must haves’ cannot be avoided. But, those under ‘like to have’ can always be deferred to another month or so when your budget allows.
- Budget—Next is the step of making a budget each month. This should be done by taking into account your monthly income and your expenses.
- Emergency fund—Saving for an emergency fund can be regarded as a safety net. Such an amount will be helpful in case you need some money to be used in case of any unforeseen emergency without making you stressed.
- Drop your credit card home—It is good to leave back your credit card at home when going for shopping. This will save you from getting involved in impulsive buying. And it will ultimately help you stay out of debt.
So, by exercising all the above mentioned strategies, you can certainly not only successfully manage to get out of credit card debt but also stay out of debt forever.