Don’t drown in debt
Owning a credit card is like saying “I owe this company money”. It’s a nightmare come true when you find out all your credit cards maxed out and you can’t even pay the interest payments.
CASH, CASH, CASH. Paying cash is one way to ward off unexpected credit card overload. Using credit cards gives you a sense that “ooh, I still have some money”, but in actuality you are already in the red. Don’t get in the mode of receiving your credit card statement only to find out that rate of interest charges have gone so high that you don’t know where to get the extra money to pay for it.
INTEREST, INTEREST, INTEREST. Prioritize payment of the card that charges the highest interest rate. The faster you do this, the lighter the financial load will be. Target to pay more than the minimum, doing so can help reduce your debt quicker.
DISCIPLINE, DISCIPLINE, DISCIPLINE. The thought of upcoming cash (like a bonus), prompts us to spend it first before we even receive it. Such is a cycle if unabated will result in debt. Credit cards are not detrimental if used wisely. You should target to buy items that you know you can pay when the bill arrives.
Consolidated Debt Statement
This is a compilation of all the money you owe anybody, from the bank to your best friend. This gauges the gravity of your financial situation.
It can be easily calculated as (A) Credit Card Debt + (B) Outstanding balance on loans + (C) Money you owe to other people.
