Here are some steps that I take with my credit cards……
1. Give yourself $100 (or whatever your budget is) a month for shopping (birthdays, gifts, clothes, Christmas, and extras). For this month I have already spent $50 on monkey’s birthday supplies, so I only have $50 to last me another 20 days. I found it easier to keep track of my “shopping money” by having it in another bank account, away from my bills, away from my savings.
2. Now that I have my “shopping money” I completely stopped using credit cards, I actually don’t even carry them around with me. It’s a good feeling that you know your balance isn’t going up. But if you have to carry a credit card, tape the balance of your card so you see what you owe every time you use it.
3. If you are still thinking about purchasing something and charging it, look at the price and think how many hours you have to work to pay for that item, how many hours you have to by away from your family to take this item home.
4. Now that you have stop using your credit cards, apply for an interest free credit card and transfer your balances. But if you can’t get an interest free credit card, then I would pay off your smallest balance first by paying the minim payments on the others and throwing all extra cash onto one card at a time.
5. How do you get “extra cash” to pay off your credit cards; start being frugal. Lower all your bills, your cell phone, electric, gas, and most definitely food. Shop around for car and house insurance. Create a budget and see where your money is going!
3 comments:
Good tips! My dad was in the military and therefore we had USAA for insurance and finances. When I was 16, they sent me a credit card with a limit of $6000...stupid move. Needless to say, my husband and I are still paying that off...we've gotten a lot smarter about credit cards though because of my mistakes!
I think it's better to make our mistakes young and learn from them now then later down the line. We have a better appreciation for money for the rest of our lives.
well said amanda!! but im still kicking myself in the ass for running up a credit card way back when lol..
i always got such high credit limits when given a cc..so im on the right path now..but i still got 2 years and 7 grand to get rid of..ugh..
after that..ill still have one credit card..but it will only be for emergencies..
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