Do you have too much debt on your credit cards? Are you worried about your debt and want to reduce it? Then take comfort from the fact that you are not alone. In fact there are lots of people in the same boat as you. In order to get ahead of the game, you need to increase your personal finance knowledge and then apply your new found expertise. Do not hide your head in the sand. The fact you are actually reading this is a good start. It means you are more likely to start getting out of the hole you have created for yourself.
So what do you do? How do you actually start getting out of your dilemma?
If you continue searching online you will find loads of ways to do this. There are actually lots of solutions. Your problem now is choosing the correct solution for yourself and applying it.
Try and keep your solution as simple as possible. The simpler it is the more likely you totally understand it and the more likely you will apply your solution with discipline.
I suggest you study and apply the following basic steps, at least to start.
1 – Prepare a budget for yourself or for your family. This is easily said and most people will advise you to start with your budget, but I do not. There is one thing you should do first.
2 – The very first thing you should do is find out exactly where you are now. In other words, take stock of your present situation. Write it down or use a spreadsheet, whatever works for you. But get all the information you can from your credit cards. You will need how much you owe; when your payment is due; the APR; the reward points earned; any redemption offers for your reward points; plus anything else your card offers. Do this for each of your cards.
3 – Once you have done that you will be able to see which of your cards is hurting you the most. Usually it is the one with the highest APR or the highest balance. This depends on your specific situation.
4 – Do you have any reward points? Can they be used to make a partial repayment? Or can you use them to get something you need? Remember you will have to start spending less and if you can get what you need for points instead of money the better off you will be.
5 – Now prepare another table, this one comparing all the offers you have available for improving your situation. Offers such as; a bank loan; consolidating your debt; whatever you can find that could help you. Make your decision and go for it.
6 – Now you need to be disciplined. Prepare yourself a budget as described in item 1. If you do this now you will have a far better understanding of your present financial position. So your budget has a far better chance of succeeding.
7 – Once you have done this and are living with your new budget, start looking for additional ways to increase your income. There are many and various. Do not believe you are stuck with what you have. Actively start searching out all the options available to you.
These proposals are just one set in a multitude of solutions you can use. But remember, whichever one you use, you will need to increase your personal finance knowledge. And this does not mean simply reading about a method. It means you should apply the method. All the reading in the world will not help you unless you actually apply some of it.