Home Budget Planning: Tips About Avoiding Credit Card Debt
Credit card debt is not something that is unavoidable, and despite it being the cause of over a million bankruptcies every year, it is something that can be successfully avoiding with some simply home budget planning on your behalf. This is because many apply for and obtain credit cards without fully understanding the contract. Moreover, people with credit cards go on to spend like crazy without keeping track of expenses, miss payments, and get the shock of their lives when they have to pay annual fees, and as a result their debt increases enormously.
Many people are quick to blame the credit card companies for their dire situations, but it's about time that people take responsibility for their own actions.
One piece of careless spending with the plastic does not normally accumulate a large amount of debt. What makes people rack up a large amount of debt is not documenting each additional purchase they make with their card. As a result, everyone is capable of getting themselves out of a dire debt situation. All you have to do is simply spend less than what you bring in. With this in mind you can begin what is a long-term solution to gradually reduce your debt.
You will find it more effective to use your won't power than your willpower in this case. Work out what you need and rationalise it against your income and if you can give yourself a small luxury every now and then, it will help to stay on target. It's likely that you will have to focus a fair bit on debt reduction and elimination, but it will happen and the speed at which it occurs may surprise you.
At the beginning, it will not be easy to keep to your debt reduction plan, but keep in mind that at the end of it all, it will be worth the effort.
Even after successfully reducing your debt, it's important that your old habits don't re-appear. The only way you can end up being the winner in this situation is by focussing all your energy on sticking to your new spending habits. It's a bit like dieting, it's hard in the beginning learning the new habits, but the result will be well worth it when you find your finances healthy again.
You can resolve a lot of your financial problems in your life with some simple Home Budget Planning and by not spending money you don't have is a great start!
Many people are quick to blame the credit card companies for their dire situations, but it's about time that people take responsibility for their own actions.
One piece of careless spending with the plastic does not normally accumulate a large amount of debt. What makes people rack up a large amount of debt is not documenting each additional purchase they make with their card. As a result, everyone is capable of getting themselves out of a dire debt situation. All you have to do is simply spend less than what you bring in. With this in mind you can begin what is a long-term solution to gradually reduce your debt.
You will find it more effective to use your won't power than your willpower in this case. Work out what you need and rationalise it against your income and if you can give yourself a small luxury every now and then, it will help to stay on target. It's likely that you will have to focus a fair bit on debt reduction and elimination, but it will happen and the speed at which it occurs may surprise you.
At the beginning, it will not be easy to keep to your debt reduction plan, but keep in mind that at the end of it all, it will be worth the effort.
Even after successfully reducing your debt, it's important that your old habits don't re-appear. The only way you can end up being the winner in this situation is by focussing all your energy on sticking to your new spending habits. It's a bit like dieting, it's hard in the beginning learning the new habits, but the result will be well worth it when you find your finances healthy again.
You can resolve a lot of your financial problems in your life with some simple Home Budget Planning and by not spending money you don't have is a great start!
About the Author:
Jenni Snook is the chief columnist of http://www.HomeBudgetPlanning.com, a website focused on giving people important yet very usable advice on how home budget planning can boost your quality of life.
posted by Credit Counseling at
6:16 AM
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