How will you understand the warning signs of getting too deep in credit card debt? I can help you out in this. If you are paying a credit card bill which is more than 15% of your monthly income, then you have reached that point of time where you need to wake up and peep into your spending habits because your credit card debt is getting out of control! Another way to understand it, is when you start paying one credit card bill by taking cash advance on another credit card.One good thing to say to you that you are not the only person to have such financial habits, there are some 39% of the credit card holders who pays the minimum amount to hold a card. If this is the case i.e. of not paying your credit card bills then a credit card holder will be in debt for his whole life. To avoid this circumstance to arise, we need to find out solutions. Solutions which I can provide to you are as follows:
Have a control on your spending habits.
Don’t do so much of recurring expenses which can be easily made affordable.
Try avoiding coupons to do your grocery shopping because it’s a sheer waste of money (coupons can be used to purchase those products which starts by carrying an outrageous mark up). You should also try to avoid branded or processed (it hampers your health too) food products because it has got higher price which increases your debt.
Another most important suggestion of mine would be to avoid having soft drinks. It helps you to deteriorate your health as well as increases your debt. Instead of having soft drinks, if you consider drinking straight water as a substitute, then it will be much healthier and will lessen down your expenses too.
You can even change your food choices to improve your health and in other way reduce your debt. You can consider reducing visits to the restaurants and also reducing expenditure on fast food.
If you try the above mentioned solutions then surely you will get a good result of reducing your debt. It is my belief!
After reading the post one question pops up in my mind that don't you use branded products? Don't you go to restaurants? I cannot stop all these as they have been engraved in my self. I can avoid taking debts or using useless credit cards but not these.
ReplyDeletehi!
ReplyDeletefirst I would like to thank you for asking a question. In the above mentioned article, it was my suggestions which I tried putting in front of everyone and helping people to lessen up their debt by cutting down few of their expenses which I think they can. I would also mention that may be you are not in debt or you may not use credit cards, but there are people who are in debt and who want to come out of their debt.
Hi,
ReplyDeleteI agree to what Rachelle say, CC looks are good when it is in your pocket but when it comes out its always bombard in in your credit limit and epically when your earning is fix and expenditure have no control. Like me there will be lots of ppl for which the bank issuing cc is earning huge interest and increasing your overall revenue.