Being in debt is never an easy experience, and aside from making you financially unhealthy, it can make people lose confidence in their ability to manage their finances and impact how quickly and effectively they can figure out ways to pull themselves out of the debt they are in.
So, whether you decide to utilize a balance transfer and transfer your credit card balance to a different zero interest credit card, or you decide to take out a personal loan to pay off your debt as soon as possible, or maybe you even opt for debt consolidation, and you put all your debt onto one single card to eliminate multiple channels of interest charges, the worst thing you can do is find yourself falling right back into financial debt.
To avoid falling back into debt after you have climbed your way out of it, you may have to rewire your perspective. By making some behavioral changes and changing your perspective on money and finances, you can make sure that you never find yourself riddled with debt again.
Taking charge of your financial well-being does not have to be rocket science. Simply making a few changes can make all the difference.
One best way to pay off credit card debt is to create a spreadsheet and track what you make and what you spend. There are a number of apps that can help you easily do this. CreditKarma and Mint both are popular choices. If you prefer, you can set up a spreadsheet in excel as well.
Once you are able to track your spending you can make certain you do not spend more than you earn. A debt snowball is where you start to spend just slightly more than you make. After a while it begins to accumulate until you have a mountain of debt again.
Some of the main reasons for this are automatic subscriptions for various apps, online programs, audible, Netflix, and other such types of programs. Make sure you account for these in your spreadsheet.
One of the best reasons for using a program or a spreadsheet is so you can analyze in a less emotional way how you are spending your money. Are you spending your money on “needs” or “wants”?
Needs are those necessities you need to survive, such as water, utilities, rent, and groceries. Wants include video games, impulse buys, subscription boxes, and streaming services.