One of the misfortune or rather malice that the U.S. economy faces today is the spiraling consumer credit card debt. Debtors with credit card dues have piled up several hundreds of dollars as late fine. This is shrinking the purchase power parity of the mediocre American families because a major portion of the monthly income is taken away by the creditors as debt repayment.
Therefore, these unfortunate people (debtors) need some sort of debt relief options immediately. This will release some pressure on the government as well as on the economy. However, debtors can get out of debt on their own by following few guidelines mentioned in this article.
How to reduce credit card debt?
Here are few simple tricks that will help you to reduce debt and become debt free:
Prepare yourself – If you go for shopping just to relieve yourself of boredom and boss’s pressure, then you must find a better alternative to do so. This is because even if you are buying inexpensive and menial items, you’ll have to repay the bill amount (along with the applied interest) sooner rather than later. One of the ways to remind yourself of all your debts is to make a list of them and put them in a place where you frequent more often. This way you’ll be able to keep your shopping urge in check and reduce unnecessary spending.
Create achievable goals – It is very important to be true to yourself in order to get out of debt. Gather all the details of your debts like educational loans, medical dues, credit card bills and other loans to know your actual financial status. Make use of a debt-to-income ratio calculator. This will reveal how much you can afford to pay to all your creditors after meeting all the other essential expenses.
Boost your morale – Start by paying for the smallest loan amount. This will act a morale booster and help you to cut your expenses. Once you are done with the smallest debt move to the immediate next higher debt. It will give you a sense of accomplishment and very soon you’ll find yourself free from all the debt obligations.
Avoid too much partying – Learn to stay within your income limits and decide to say a ‘no’ to every bad bargain. You may have rich friends who might invite you over to their parties quite often. Avoid them, even if they look down upon you. However, most people will understand your cause and relent. If you are serious of becoming debt free, then no one can stop you from being one.
There are innumerous debt relief options to help bad debtors come out of the debt cycle. However, everything revolves around the debtor who wants to shed off his debt.