Hey everyone, Travis here. Its another warm and humid day in Hawaii, and in this sweltering heat has got me feeling like I cant breathe. But while I only have to worry about the heat and bringing and extra shirt to work, I know some of you may be feeling like this lady instead:
Yes, sweltering under the oppression of credit card debt. We have all been through it at some point in our lives, and if not yet, you will soon find out. Maybe it was from a shopping spree that just went a little too far, or maybe you forgot your cash at home when making a big purchase. Either way, its not as hard as you think to get dragged into debt
According to NerdWallet.com, in this is what the average consumer debt looks like in 2015:
U.S. household consumer debt profile:
- Average credit card debt: $15,863
- Average mortgage debt: $156,584
- Average student loan debt: $33,090
Now think, how much credit card debt do you currently hold?
What is the Cause of All This Debt?
Today, more American's than ever are choosing to go with plastic, rather than paper. Paying with a card is just so quick, easy, and convenient. But it is the underlying dangers of paying with card that can trap you in over $15,000 of debt. When we spend with plastic we don't physically feel our cash been used. We just swipe and don't think twice. Just because Rae Sremmurd doesn't check the price, doesn't mean you shouldn't either!
Eventually, you begin to lose track of how much you spend. Then when you receive your credit card bill at the end of the month, and you cant believe your eyes
I am going to give you THREE ways to help bring down your credit card debt, and get your spending habits into control
1) Set aside the amount of cash you want to spend for the day or the week, and leave your plastic at home.
Spending money in cash is the first step to curb your debt. If you are already in debt, you cant risk yourself getting deeper into debt. So leave your credit card at home next time you go out. Get this; credit cards have an interest rate of 15% and higher! This means you actually lose more money the longer your debt goes unpaid.
Studies have shown that people are able to curb their spending when they spend in cash because they realize how much they spend. Don't be a bum just because you got happy with the plastic!
2) Cut the Frivilous spending you do and focus on the necessitiesf
Cut the extra stuff you have been spending your money on: eating our, buying drinks, or going to the movies. Cook food at home instead of buying lunch at work. Take the bus instead of spending money on gas and parking. Drink water instead of buying boba or Starbucks. Every dollar goes a long way to helping you pay down your debt.
3) Set a strict budget for you spending, and set aside a portion of the leftover money to pay down your credit card bills
Set aside your budget for the week, and set that as your absolute limit. For example, if you have a paycheck of $500 every two weeks, set aside the amount of money you need for necessities, and also set aside an amount to pay for your credit card balance. Planning will help you realize how much you actually need to get through the week. Being disciplined is key here. If you take just enough cash budgeted for your day and leave your credit card at home, you'll be safe knowing you won't be able to spend.
Thanks for reading with me. The first step to financial freedom is getting the debt monkey off your back. If you have an questions or would like to know more about the how to pay your credit card debt, contact me at tganiko@hawaii.edu.
