2 Basic Tips for Minding Your Own Credit Card Debt
Tuesday, August 14, 2012, 2:00 AM | Leave Comment
Every month Federal Reserve publishes the levels of national debt and how much national credit is outstanding. One month credit is up, another it’s down. It is a pendulum that never stops. But debt seems to rise month after month. Watch it yourself: The US National Debt knows no speed limit. You might not feel you are a part of it but you are definitely affected by it.
Don’t bury your head in sand with debt…
You can never sweep your debt and push it under the carpet. You must deal with it and confront it head-on as a man – so to speak – even if you are a woman.
There are many folks who keep spending needlessly without realizing they are accumulating debt. They are the ones who bury their heads in sand and ignoring their ever increasing debt.
They are the ones who don’t need any kind of budget in their finances. What they need is a shrink who can tell them outright without hesitation that they are on the path of total financial destruction. The shrink ought to give them tips to change their mindset about saving and spending.
Consumers are increasingly becoming smart…
Consumers are quite smart – well! may be not all of them. Many have decided they will pay their credit card bills in full and before the due date every month.
The reason is that they have been facing some very tough facts during the last few years. They have determined from their own personal experience that it’s ultra important to pay off debt as soon as possible and save money by not paying interest in the long run.
Many have found out they have no choice but to act responsibly with their finances, especially using their credit cards.
Realistic budget is absolutely necessary…
It’s absolutely essential to know where you stand regarding debt so you can create a workable and realistic budget. The benefits for a family budget are quite overwhelming but you must completely follow it for the long haul.
Following budget of your finances to the core can get you out of debt and thereby live a happy and satisfied financial life.
Two most important tasks you can do now – at this minute
There are a variety of ways to confront your debt and eventually get out of it with honorable discharge – creating nothing but respect in your community.
Two tasks stand out among the so many you can do to reduce and eliminate debt:
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Get your free annual credit report
Get your free annual credit report, read it thoroughly and understand it completely. See if there are any discrepancies in it regarding your credit history.
If you find any suspicious entry in your credit report, file a dispute. However, keep in mind that some of your past history may be legitimate mistakes on your part.
The important thing is to make sure that everything in your credit history is reported correctly. If you had a few late payments at times but eventually paid off the debt later, your report should reflect it.
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Make a concerted effort to pay down your credit card debts
The best effort is to pay your credit card bills in full and before the due date every month. Many folks do it and the result is they don’t carry credit card debt.
These folks save a bundle in interest, late fees and other finance charges. They have the saved money available to invest for their retirement among other things.
If you cannot pay your bills in full, then the second best thing to do is to prioritize and find ways to pay off debt as soon as possible. This blog and many others have spelled out in detail how to go about managing debt.
That means you must hold off big item purchases until you pay off your existing debt. As we all know interest on credit card debt is a lot more than interest on mortgages and student loans.
Credit card debt is usually the biggest culprit to mess up your financial life. It can create sleep disorder, stress, depression and a whole lot of other miseries in your life. To reduce these symptoms, you ought to have self control.
So pay some serious attention to start paying down your credit card debt and eventually paying it off completely.
In a Nutshell
Pay special attention to pay off your credit card debt and live a better financial life.
