Best Ways to Settle & Eliminate Credit Card Debt FAST:
1. Hire The Best Debt Settlement Company
2. Do It Yourself Debt Elimination
Time to deal with holiday debt
Now that the holidays are over, many Americans are mired in debt. Sure it was easy to pull out credit cards for expenses, but now is when the credit card bills are coming in. The spokeswoman for the National Foundation of Credit Counseling, Gail Cunningham, said, “It will only get worse as the bills continue to arrive…putting it off will only result in ruined credit and more stress.”
One of the most important tips the National Foundation for Credit Counseling gives to all its clients is to set a goal date when holiday debt will be paid off. Cunningham stated, “Setting a goal date like March 31, for example, can give you a clear picture of what you have to do to pay down debt.”
Credit cards and the future
When you are trying to get out of debt, it is important to stop purchasing on credit. Though small charges seem to be more easily handled with plastic, they add up quickly. She also counsels her clients not to stretch out payments because of holiday spending, which negates the savings. Once the season is over, leave the credit cards alone. If you can’t afford to pay for an item with cash then leave it at the store. Lynn Mayabb, a financial planner with BKD Wealth Advisors stated that, “It is much harder to pay for something if you have to pull cash out of your wallet.” Research shows that people who pay with cash end up spending about 20% less than those who use credit. Using cash might make you cut back a lot on frivolous purchases.
Budgeting post-holiday season is crucial
Finding a workable budget is also important to getting out from under Christmas debt. Experts caution that budgeting isn’t always enjoyable. In fact, it can be a difficult task to honestly assess what comes in versus what goes out on a monthly basis. In the end, it’s the only way to get an accurate picture of where your money is going, and what you need to change.
The best way to start a budget is track every expense for the month. Cunningham said, “It can be as intricate as buying a software program to help you track expenses, using a spreadsheet or getting a notebook for 99 cents.” It’s also important to note everything from a big-ticket item’s purchase to a cup of coffee. You want the most accurate picture of the month’s finances as possible. That way you can make the changes that are necessary to reach your goals.
Check out the paperwork
Finally, it’s important to take time to look at paperwork that may reveal money drains. Review your tax withholding on your W-4, and it can show you if you’re deducting more than you should per month. Reading credit card statements can tell you if there are any charges you aren’t aware of. Cunningham said, “You’d be surprised at how many people are unaware of a $ 9.99 charge to their credit cards that came with a free-trial. Sure it may not sound like a lot, but over the course of a year, that adds up to almost $ 120.”
No debt is good debt
Debt is something that can easily grow out of control during the holiday season. It’s an expensive time for many Americans and a lot of stress comes along with it. Addressing debt early on is the key to getting rid of it. It might take a few months, but paying it off will save money long term. When the credit card statement has a zero balance, rejoice, as you have conquered the enemy.