It goes without a doubt that credit cards make life easier for you. However, that comfort comes at a cost in the long run. If you do not want to stay indebted all through your life then you’ll have to come up with ideas to best utilize credit cards. First, ensure that you use credit cards only when necessary. Here are some other options you can consider for staying credit card debt free.
- Get better rates
A quick fix for saving big while using credit cards is negotiating a lower rate of interest. Even getting rid of some percentage points will go a long way in saving money and keeping yourself out of credit card debt. If you have good credit score, you are more likely to get better rates.
- Track down the costs
Tracking down the costs will help you in budgeting for your expenses. Write down regular and committed expenses first including mortgage, insurance, utilities, phone, cable, gym, car payments, minimum payments for credit card, etc. Also track your variable expenses like restaurant meals, travel, and entertainment.
- Set up a budget
Once you have tracked down your costs, you should cut down on certain expenses and set up a budget for you. Be realistic and make a few sacrifices. It’s a fact that you will find it hard to give a dramatic change to your lifestyle but, remember, little adjustments would add up and help you save big.
- Plan your credit card repayments
Apparently you’d feel that you can’t make bigger repayments against your credit card debts, but if you’re seriously looking to get debt-free then you will have to make a few changes. There are quite a few options through which you can free up some cash for paying down your debt. The best you can do, however, is to reduce expenses by reducing your utility bills, cable packages, eating out bills and elective purchases.
- Budget your debt repayment
Though it may not be your favorite pastime to do budgeting, but laying out a realistic plan for debt management is necessary. Determine what you earn every month and then subtract all the expenses you have budgeted for from that. Depending on this calculation, you should now designate a certain amount for payment of credit card debt every month. Just make sure that you leave some room to wiggle around in case of any emergencies or fluctuations.