Medical emergencies, layoffs from regular employment and many other external factors can put you in a situation of debt. Many a time, debt is a result of poor financial management when a person spends beyond his normal means.
Simple tips listed below can help in getting you out of credit card debt.
- Budget your expenses: List down your normal requirement like monthly utility bills, cash required for basic necessities, liabilities, etc. This would give you a clear idea about the amount of money available for you to spend in a month. Spend only within this budget.
- Credit card dues: Be regular in paying all your credit card dues. Do not accumulate the balance until it reaches your full credit limit.
- Reduce credit card usage: Own just one credit card and use it only during emergencies. Do not swipe the card for normal transactions. Use cash to pay for your daily expenses. This would reduce your habit of overspending money.
- Withdrawal limits: Mentally decide how much money you would like to allocate for spending on a weekly or month basis. Stick to that budget as far as possible. Cut down unnecessary expenses like talking for long hours on mobile phone or dining out often in expensive places.
- Evaluate your lifestyle: Your housing rental should not be more than thirty-three percent of your total income that you get on hand every month. Take into consideration the amount remaining after you pay for your liabilities like taxes and insurances.
More Articles :