Managing credit card debt does not have to be as daunting as we make it out to be.
Do you know that with a little faith in yourself, some self discipline and a commitment to making it happen, you too can take control of your credit card debt? I know this to be a fact because I too, am privy to multiple testimonials of family, friends, and co-workers who decided to take the plunge and have taken a few simple steps towards managing their credit cards, and have seen the wonderfully fulfilling results.
So just how easy is it? Below are a few simple tips: First-- You should get the skeletons out of the closet.
This might sound intimidating, but it isn't.
You just have to face reality.
"How do you do that"? you might ask...
You have to be willing to not keep any secrets from yourself.
What? How can I keep secrets from myself? You'd be surprised at how many people avoid difficult conversations with themselves simply because they would rather not know how much financial trouble they are in than know and be faced to so something about it.
So 1) Get out all of your credit cards- Department Store Cards, Hardware Store Cards, Grocery Store Cards, Gas Cards, Promotional Cards, Visa Cards, Master Cards, Discover Cards, American Express Cards, and any other that may not be listed here.
Lay them out in front of you.
If you are one who is experienced with spreadsheets or any word processing software, make a list of all of these cards.
If you do not know how to use the computer WRITE THEM DOWN with pencil and paper.
It should not matter whether or not you have used any of those cards recently, take note.
When, this happens, many people are surprised by what is turning up.
They may have forgotten about their cards especially it they have used up to the maximum available balances.
If you have gone through this step without cheating give yourself a pat on the back and let's move on to step 2.
In step 2 we are still interested in gathering additional information about our credit cards.
Perhaps we have lost control of how much money is available for use or we have lost track of the interest rates on our open cards.
If we hope to make progress on our goal to pay off the balances on these cards, we must be as detailed with the next step.
With list in hand, call the 1-800 Customer Service Number on all of your cards and find out exactly how much you owe.
The purpose of your call should be to find out three things: a) outstanding balances, b) the interest rates and c) the minimum balances that need to be paid off each month.
Again record that information on your spreadsheet or paper for every credit card that you have listed.
You may not realize it but at this point you have just taken two GIANT steps towards managing your credit card debt.
A heavy burden should be lifted off your shoulders, because you now have more information about your debt than you did before.
Tally up the total outstanding balance and take all of the time that you need in the moment.
It may very well be overwhelming for you.
Some people have been in denial or may have turned a blind eye with regards to their credit card debt for so long that they literally need some time to take control of their emotions.
They do not recognize themselves in the credit picture that is unfolding before them.
There is no way those numbers could belong to hem.
It is literally impossible for things to have spiraled so out of control and so fast they tell themselves.
Emotions vary in these situations; Some people feel a sense of disappointment, others feel guilt, other feel like a failures while others take it in stride, accept the situation and are now even more determined to get things under control.
No matter the emotion, you should believe that you are moving in the right direction towards getting rid of the debt and on your way to financial freedom.
Now that you know all of this what do you do next? Step 3.
We now have to work on a strategy for payment.
Commit to paying the minimum payments on every card that that you have except one.
The one that you leave out will be the one that you put all extra funding towards.
In another posting, we will talk more about figuring out how much money we have available for paying off our debts and work on strategies for making the best use of our funds...
Stay tuned!!