5 Reasons Why You Are Still Stuck Knee- Deep in Credit Card Debt
With the credit card bills piling up, you know you have created a ditch for yourself unwillingly. The events that led you to this point are a blur, mostly because you may not be willing to admit your mistakes. When someone point blankly tells you where you are going wrong, it dawns on you that it may be time to fix the wrongs.
Don’t feel bad, as we all have made similar mistakes, but the good thing is that you can still come back strong from your credit card debt. Therefore, we have identified five common mistakes that people who are stuck knee-deep in credit card debt make:
1. You Earn Less, but Spend More
Most people don’t have a clue of how much money they are spending each day. You need to have a rough estimation of the amount of money you should spend so you can use the money saved to decrease your credit card debt.
A simple solution to do this is to divide your salary by the amount of working days in one month and subtract tax from it to find out how much money you are left with. Now, spend around the remaining balance, reserving some to repay your debts and other bills.
2. Your Wants Surpass Your Needs
Stop focusing on your wants and pay attention to what you need. Clothes, accessories, shoes, cars, and fast food are all wants, especially if you already have an excess of them. Where you think you can save money, save it.
3. You Have a Habit to Swipe Your Credit Card
Sometimes, swiping the credit card becomes second nature to us. We begin to swipe the credit card for the smallest purchases and gradually, it increases our credit card debt. Purchasing with your credit card may be out of habit, but it’s a habit that you can control by being more conscious about your purchases.
4. You Are Clueless About Your Expenses
You may pay your bills on time, but have you ever added the total number of bills that you pay each month? For those that don’t know the total amount in bills they pay each month, it’s time they start doing the math. After you find out the total, set up a direct debt account, solely reserved for paying utility expenses and make a note of the date the expenses are due.
5. You Do Not Have a Plan to Combat Debt
You don’t have a budget, which is one of the primary reasons why you are drowning in debt. You need to set your priorities straight; make a budget, figure out where you are spending the most, and cut them out of your life forever.
If any of these mistakes relate to you, fix them to eliminate debt for good. If you can think of any more reasons to add to this list, feel free to add below in the comments.
A Selection of Credit Quotes
“Debt is dumb. Cash is king.” ~ Dave Ramsey
“Debt can turn a free, happy person into a bitter human being.” ~ Michael Mihalik
“Chains of habit are too light to be felt until they are too heavy to be broken.” ~ Warren Buffett
“If you’re thinking of debt, that’s what you’re going to attract.” ~ Bob Proctor
“Debt is normal. Be weird.” ~ Dave Ramsey