Credit card debt does not build up in a day. I cannot tell you how many times I cleared off a credit card, and then stuck it in my safety deposit box. I vowed to only pull it out in the case of the direst emergency. I promised to buy myself a treat if I could keep it clear of any new charges for six months. In addition, I intended to put away the cash for my next vacation, in addition to setting aside an emergency fund every month! I had the best intentions of living the debt free lifestyle.
But then time passed, and very often, it was not that much time. My car might have needed new tires, or my vacation fund had not grown into an amount sufficient to last for a couple of days, much less a whole week! I pulled out my credit card, still promising myself that I would only use it one time. I would pay for the new tires, or only one night of a hotel room. But then, once the plastic was in my hand, I could not resist the pull of using it again. Within a few weeks, I had accumulated a hefty balance. Within a few months, I was near the credit maximum on the card, and now again, faced the long process of getting it paid off. The whole thing had creeped up on me, but once it got out of hand, I had a hard time seeing how I could ever chip the debt away again.
I realized that if I only paid the minimum, the balance would never go down, and sometimes would even go up. It seems that credit card companies design it that way. I knew that I had to really come up with a strategy to pay off the debt and manage future temptations. That is when I got the idea that the whole process was a lot like the process of sticking to a sensible diet.
Goals should be reasonable. Just like you might set your first weight loss goal to losing 10 pounds, or dropping one pant size, in 6 weeks, so you should look at the one balance that would be the easiest to pay off. So go ahead and pay the minimums on the rest of the cards and do everything you can to attack the lowest amount. Also set aside one more payment as a deposit to your own personal savings account. You would be surprised, but by saving only $25 or $50 a month, you can have some cash on hand to make it easier to keep from pulling out the plastic! Once you have done this, you will feel satisfied because you will have reached a goal.
Now you can set that card aside for emergencies, and work on the next smallest amount! When the second one is paid off, I would suggest destroying one of the credit cards. Now you have only one to use for emergencies, and not two! Of course, I would pick the one with the lowest interest rates to keep!
Of course, this all presumes that you have enough income coming in to fund your new debt free lifestyle. I know it can be hard, but try looking for some ways to supplement your income. Can you offer to watch the neighbor’s kids while they have a week-end date? Garage sales can be more profitable than you think. And of course, you always have the tried and true strategy of cleaning out your closets and selling clothes, books, or dvds on the online auctions. It can be a bit of work, but you’ll be satisfied to collect some extra money to put towards debt and savings. And actually, things like selling on EBay and holding garage sales can also be a lot of fun!
If you fall off the wagon, and use that card for a new dental crown or a night out, do not punish yourself. It is the same as dieting, and when you allow yourself to over eat at a party. Just wake up the next morning, and start again. Even if you cheat once in awhile, you are probably still better off than if you never tried to pay your debt off at all.
By: Marilyn Katz