Do you feel as if your spending habits or needs out weigh your own monetary threshold? Are there times financially, where you feel as if you don’t have enough money? Do you feel that you are the only one looking for help with debt? These are all questions that many people can answer “yes” to. With on going financial issues the economy has been handling since 2009 the number of people asking these questions have grown substantially. However there are free answers, tips and help to gain relief from debt.
In 2010 the U.S Census Bureau shows that on average credit card holders have around $5,100 in debt and rising.2 Also it shows that U.S citizens alone have over 866 billion dollars in credit card debt. These numbers for someone with no debt may seem unimaginable, but if you do fall within these numbers you can clearly see that you are not alone.
Even though these statistics may seem daunting, debt to a certain extent is a good thing. Debt can be defined as the amount owed to a person or organization for funds or services borrowed.1 Debt can be accumulated through loans, credit cards (the most popular), bonds, and mortgages. Most debt including loans, credit cards, and mortgages are necessary to have to live. However, most problems arise with debt when needs and wants are mixed together.
A few tips to keep yourself away from accumulating, “bad” debt are:
Have only one credit card
Having only one credit card helps minimize the amount of accounts that a card holder has to keep track of.
Constantly reminding yourself and having constant reminders of when the credit card cycle is over, and when your bills are due will help cut down on late fees, and make it easier to keep up with payments.
Create a separate budget
Creating a separate budget for debt management alone will help cut down on excessive credit card spending/ debt and allow the card holder to be able to recognize and manage how much bill payments will be.
When choosing a credit card to apply for look at the services that the company has to offer. Credit card companies don’t want their card holders to carry excessive debt, because they understand that they won’t receive their money if the card holder can’t pay it. Most companies offer online banking to allow the card holder to see the amount of credit they have used. Some also offer debt relief help, similar to this article, except with a face to face approach. Other companies often offer rewards programs, and lower interest rates to card holders who pay their bill on time. Utilize and be aware of these resources that credit card companies are offering, it will really help.
Stick to it
The most important tip is to stick to your plans and budgets. The easy part is creating the budget, differentiating between needs and wants, but if you want to achieve complete relief from debt, stick to the budget.
Equan has always found economic issues and principles interesting since he was young. At the age of 14 he created a plan for his automotive business, and used tables, charts and actual numbers to configure financial information that he would use to start his business.
From high school to college not much has changed for Equan. He still loves to play basketball and still has aspirations to own his own business and work on cars all day. Not many morals have changed either, but being part of the Wolf Pack nation he can’t help but to yell “GO PACK” at any chance he can get.