Are you finding it harder and harder to keep up with your credit card debt? If so you’re not alone. Many parents are struggling to pay their bills and are looking for ways to free themselves of credit card debt once and for all. The Internet is full of informative websites that will provide you with tips to help you get rid of your credit card debt.
As parents we incur credit card debt for many different reasons sometimes it’s the result of accidents, illness or job loss. Others times we’re so caught up with keeping up with the Joneses and living in a buy-it-now society that before we know it our once manageable credit card debt has gotten away from us. The underlying problem is many of us don’t have a clue how to live within our means. Living beyond our means has become a habit and the only way we’re able to survive is to continue using our credit cards. And the problem with that is our debt keeps growing. First off, when you’re looking to get rid off your credit card debt you need to create a budget and then stick to it. Begin by making a list of all your income sources. Then start with your fixed expenses (mortgage payments, insurance premiums, auto loans). Next, write down variable monthly expenses (groceries, utilities, gifts, entertainment, clothing). Don’t forget to factor in some allowance for unexpected expenses that come up like when your washer or dryer quits or your roof leaks. It’s wise to put a little money aside each month for just this purpose. If you have more variable monthly expenses than you have income then it’s important to go over your expenses in greater detail. What expenses can you realistically do without and or cut back on until your debts are paid? It basically comes down to self-discipline and learning how to reduce your spending whether that means less meals out or less trips to the mall. You may even want to go so far as to use ‘cash only’ to make your purchases. I know, this flies in the face of today’s ‘debit card’ society but it does give you greater control of your money and where it’s going. Create ‘cash’ envelopes for all your variable expenses at the beginning of each month and keep a running total of what is spent. This exercise not only shows you where your money is going but how easily it can slip through your fingers when you aren’t careful. With some serious effort in reducing your expenses and possibly finding a way to make a little more money (even in the short term) you’ll get out of credit card debt that much faster. The second step (after budgeting) in taking care of your credit card debt is to stop charging. The last thing you want is more debt to compound the problem. Start by prioritizing your credit card bills. Then make a plan to pay off as much as you can afford on the card with the lowest balance. Once that debt is paid in full you can move onto your next credit card debt. Paying off one card at a time will help you dissolve your debt faster as will putting every extra cent you have towards repayment. Over time an extra five or ten dollars here and there can really make a difference.
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