Home Budget Planning: Tips About Avoiding Credit Card Debt
You may not be unaware but some simple home budget planning can avoid substantial credit card debt which in turn is the cause of more than one million bankruptcies every year. The reason for so many bankruptcies is because many individuals do not fully understand a contract when applying for a credit card. In addition, they miss payments, happily spend away without documenting their expenses and then find annual fees are added, and suddenly their balances skyrocket.
It's time people took some responsibility for their own financial mess instead of randomly blaming the credit card companies.
One case of carefree spending does not rack you up a significant amount of debt. The ease with which you can continually add purchases onto your card without documenting the amounts you spend is what adds up to a large debt. Therefore, it's possible for you to get out of credit card debt. The goal is to spend less than what you earn. By having this in mind, you can start planning to reduce your debt over the long term.
You will find it more effective to use your won't power than your willpower in this case. Work out what you need and rationalise it against your income and if you can give yourself a small luxury every now and then, it will help to stay on target. It's likely that you will have to focus a fair bit on debt reduction and elimination, but it will happen and the speed at which it occurs may surprise you.
At first, you will have some trouble sticking to your debt reduction plan, but rest assured, if you stay strong and willing, it will all be worth it.
Most importantly, you must not return to your old habits after successfully reducing your debt. In order to do this, you must focus all your energy on these new spending habits, and this way you can only emerge victorious. You can compare this to dieting: at the beginning, it's not easy to stick to new habits, but it will all be worth it once you discover that your financial situation is healthy once again.
Your financial problems can really be helped with good Home Budget Planning.... and remember don't spend money you don't have!
It's time people took some responsibility for their own financial mess instead of randomly blaming the credit card companies.
One case of carefree spending does not rack you up a significant amount of debt. The ease with which you can continually add purchases onto your card without documenting the amounts you spend is what adds up to a large debt. Therefore, it's possible for you to get out of credit card debt. The goal is to spend less than what you earn. By having this in mind, you can start planning to reduce your debt over the long term.
You will find it more effective to use your won't power than your willpower in this case. Work out what you need and rationalise it against your income and if you can give yourself a small luxury every now and then, it will help to stay on target. It's likely that you will have to focus a fair bit on debt reduction and elimination, but it will happen and the speed at which it occurs may surprise you.
At first, you will have some trouble sticking to your debt reduction plan, but rest assured, if you stay strong and willing, it will all be worth it.
Most importantly, you must not return to your old habits after successfully reducing your debt. In order to do this, you must focus all your energy on these new spending habits, and this way you can only emerge victorious. You can compare this to dieting: at the beginning, it's not easy to stick to new habits, but it will all be worth it once you discover that your financial situation is healthy once again.
Your financial problems can really be helped with good Home Budget Planning.... and remember don't spend money you don't have!
About the Author:
Jenni Snook is the leading author of http://www.HomeBudgetPlanning.com, a website focused on providing people important yet very usable recommendations on how home budget planning can boost your quality of life.
posted by Credit Counseling at
6:55 AM
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