Getting by these days sometimes means spending money that we do not have. Honestly, not everyone can afford, for example, that bill to repair their car. Maybe an unexpected medical necessity comes up. Even our health can be expensive.
This reality makes it surprisingly easy to acquire credit card debt. For some, paying down that debt is more than hard; it is impossible. Some, however, can adopt habits to avoid being clobbered by debt. CNN Money lists some steps to address potentially risky spending habits:
Hit the brakes: If your credit card debt has you in a cycle of making minimum or partial payments just to keep up, take this as a sign to stop using the credit card immediately. Don’t charge anymore purchases until you pay the debt down.
Contemplate a budget: Have you honestly looked at your income and compared it to your spending habits? Maybe you have and only relied on credit cards to get through unexpected life challenges. Many consumers, however, can identify areas of needless or excessive spending and adjust their habits. They can apply any extra money leftover at the end of the month toward credit card bills or maybe a savings account.
Strategize payments: You might be able to get the interest rates on your credit cards lowered and make other helpful arrangements by contacting your credit card company. That is one strategy that might save you money and stress.
Decide if you will pay off high-interest or low-interest cards first. This will depend on your specific situation and needs. Do you have the money to pay the high-interest debt? If so, that will be a wise strategy. Do you have only enough to address the lower-interest debt? If so, then that is better than nothing.
After considering and/or trying all of the above strategies, do you still feel hopeless and stuck in debt? This might be true. These tips might not be of help to you and your family in some situations. It is at these times when turning to the experience of a bankruptcy lawyer is what may actually help you.