Do you lay awake at night stressed out about how you are going to pay off your mounting credit card bills? Consumer credit card debt can be a financial noose. Unless your charges were a result of emergency medical bills, chances are the balances on your credit cards ballooned over time. As such, it will take time, and a solid plan, to come out from underneath your debt and enjoy freedom from monthly bills with staggering interest payments. Follow these recommendations from the financial experts to jump start your plan to pay your credit card balances off once and for all. In order for this plan to succeed, you must commit to refraining from adding any additional charges to your balances. That means living within your means while paying the cards off. To reach any goal, there must be a degree of self-sacrifice, lots of self-discipline and motivation to eliminate the charges. The short term frugality will certainly be worth the long term freedom.
The first step is to develop a spreadsheet listing each credit card, the balance and minimum monthly payment. Total these figures. On a second spread sheet, list your fixed monthly expenses. These should include rent or mortgage payments, utilities, communications expenses, insurance and any car or student loan payments as well as minimum monthly credit card payment requirements. Total these figures. Subtract the total of your fixed monthly expenses from your monthly net, take home, pay. The resulting sum is your monthly discretionary spending amount. It is from this amount that food, gas and payments to reduce credit balances will come.
Postpone any major purchases and trips. When shopping take advantage of the awesome savings offered by Groupon coupons and check out the terrific sales on everyday value items at JC Penney. Skip your expensive morning coffee and daily lunches with coworkers and earmark those savings towards credit card payments. This can amount to as much as $3000 annually. Remind yourself that a degree of austerity is necessary to meet your goal of becoming debt free. The short term sacrifice is well worth the long term reward and freedom from credit card debt.