For those of you who now feel upset, that your debts have piled up so much. And you know that you have to set aside some money to anticipate the unexpected conditions (emergency fund) for 3-6 months, invest for the future, buying and preparing the pension insurance. But today it is nearly impossible because almost half of your income used to pay the mortgage credit card debt that never ended. What to do?
Here I will provide tips on light that will help you in solving the debt problem. The first step is to stop adding your credit card debt. Debt problem becomes lighter at the start of this simple but important step. Do you know the main cause of people using credit cards is because there are credit card in his wallet, who easily removed and used. Try to leave a credit card at home and keep refrigerated, frozen with water deposits are difficult to use unless you really must make every effort to melt the ice that locked your credit card. This way you’ve closed the door of the ease of using credit cards.
The second step, reduce the amount of your credit card. You do not need more than 2 credit cards. Every time a new credit card offers, the bank will seduce you by praising you as a customer choice and so on. But, when you are in trouble, not the praise that you get but the problem with the bank. Ceremonial in accepting offers of credit cards, if you do not need to assert yourself to say no. By limiting the amount of your credit card, you also limit the amount of debt you owe and your freedom. If it is too large, then the credit card limit will restrict your movement. Do not penetrate your credit card limit because you will have to pay a higher interest rate again.
The third step, create a monthly budget. Record spending and your income every month. Make that your income is sufficient for one month without having to use credit cards anymore. Then make a budget for one year based on data preceding months. If there is a surplus, plan to divide it in 12 months as an additional payment of your mortgage debt. And if the budget deficit, then you should arrange for adequate return.