If you realize your spending has gotten messy and needs some cleaning up, here is what you might want to do. Develop a list of your credit card balances, all outstanding balances for that matter. Then, once you have a clear picture of what you owe, organize the debts from least to greatest. Pay off your debt beginning with the smaller account balances. The best way to do this is to make your minimum payments on the larger accounts and pay as much as possible toward the smaller accounts. Eventually, the smaller accounts will be paid off and you can work your way up the list toward the one remaining large balance. This method has been referred to as the “Snowball Method” by author and financial expert Dave Ramsey.
Once you have relieved yourself of some of the debt you owe, you need to work toward preventing it’s return. A good way to ensure you do not let history repeat itself is to have savings. Yes, you need to put some money aside in case of emergency. It might seem like any extra money should go toward your debt, but that is not wise. If you fall on hard times, it is critical that you don’t swipe a credit card to remedy the situation. Instead, use the funds you have put aside for moments like this. Otherwise, you will derail your plan and the steps you have taken toward being debt free.
Our final suggestion may seem obvious, but for many it is the hardest to follow through with. Do not swipe that credit card! The fool proof way to achieve this is to get rid of the cards altogether. If you don’t physically have the credit cards anymore, it is much more difficult to impulsively charge purchases. It may seem incredibly inconvenient, but head this advice. Use cash. This way you don’t spend outside of your means.
If the methods aforementioned methods don’t seem to be working or your situation is too burdensome, remember you have options. You can always reach out for support. Call PCS Debt Relief today at 636-209-4482. PCS Debt Relief provides free consultations and programs to fit any needs. We will be happy to assist you.