Steps to getting out of Credit Card Debt: A Debt Helpline Guide

Author: Hayley Sheean  //  Category: Financial Services

With the introduction of credit cards into the market, many people are finding it easier to shop and make purchases online. Not only are they convenient, they are so safe in that you do not need to carry loads of cash as you do your daily errands. However, using credit cards requires you to be careful since indiscriminate use could land you into miles of credit card debt. In fact, many people experiencing financial difficulty right now are most likely doing so as a result of using credit cards carelessly. However, all is not lost since there are a number of debt solution options which are designed specifically to help you get rid of debt incurred from credit cards.

Steps to get out of huge credit card debts

·         Determine what you owe: Many people experiencing financial difficulty do not know how much exactly they owe. This leads to lots of procrastination making them not start managing their debts. Getting to know how much you owe immerses you into reality forcing you to make the necessary changes in order to start paying off your debts.

·         Get professional Help: The services of a financial planner usually come in handy for people experiencing financial difficulty since they are experienced enough to advise debtors accordingly. Financial planners usually help debtors view their situation objectively and also help them devise ways to repay their debts in a definite time frame.

·         Stop Using Credit Cards: Since credit cards are the major cause of credit card debt, many financial planners advise that you stop using them for your purchases. However, it is advisable to remain with one since cancelling all of them may hurt your credit score pretty badly. With a bad credit score, the bank won’t help you in case you need an emergency loan.

·         Track Your Spending: Australians are faced with financial challenges mainly because they do not track how much they spend. This puts them in a position where they cannot know where the money they earn goes. To know how much money you spend, note down every purchase you make in a span of a month. This way you will know where each dime goes. When you know where your money goes, you will be in a position to know where you can cut costs or even find cheaper alternatives helping you spend less.

·         How can you bring in more money?: When you are in debt, you need ways to supplement what you earn so that you can repay some of the money you owe. Think about an extra skill set you may possess that can help you generate more revenue. This way you will earn more money that will help you reduce that credit card debt you have.

·         Be kind to yourself: As you are repaying your debt, you should be kind enough to reward yourself for all the sacrifices you are making in order to pay back your debts. Put aside a small amount of money every day or week to fund your holiday or purchase something you love.

There are numerous ways to help people experiencing financial difficulty come out of debt. It is never too late to start paying them off!

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