Credit card debt today is one of the banes in many peopleís lives. Many will wake up at night in a lather of sweat and toss and turn, worrying about how they are going to manage to "rob Peter to pay Paul". This constant juggling of family finances is adding stress into peopleís already overstressed life and shortening life spans. Here are three easy ways to consolidate credit card debt:
1. Donít Use a Credit Card:
Sounds pretty obvious but if you donít put any charges on your credit card then they canít send you a bill at the end of the month. So when should you use a credit card?
A credit card should only be used to purchase goods and services when cash wonít do. Cash is not acceptable to be sent through the snail-mail system and it canít be used when purchasing anything off the internet.
A credit card can be used to make any big purchases like car tires or a refrigerator that is urgently needed for health and safety reasons and that you canít immediately lay your hands on some cash to pay for it. This is/ was the original purpose of a credit card, but since people have been so underpaid for so long, they have resorted to using a credit card to pay for household expenses that were once budgeted to pay cash for out of the family budget.
Also, itís not just a matter of underpaid employees but also a case of peopleís expectations and the "I want it now" syndrome. If people saved up their money instead of paying and wasting it on credit card interest, they would be able to get what they wanted at a much lower price by swapping waiting time for money.
2. Use Cash ~ Cash is King
Cold hard cash is welcomed by every business and person. Cash is money that is immediately usable, doesnít have any other charges associated with it and is acceptable everywhere. Cash is the basis of our monetary systems and still rules supreme. Cash is King.
To use cash will allow you to better handle your family budget. Once you know what you spend on groceries and incidentals every week which you will probably be able to find out from simply reading your last few credit card bills, you will know what amount of cash to get out of the bank and to use.
3. Bury the Credit Card safely in a locked drawer
Credit cards are an essential item in todayís world. Just ask anyone who doesnít have a debit or credit card just how inconvenient life can become without one! But this doesnít mean that you should use it every day.
Credit cards were originally designed to give good bank customers a means of accessing credit easily for those bigger purchases that people would go to their banks to get a small loan to buy. Then the banks saw what a Ďcash cowí they could be and made them accessible to everyone.
These days, credit card debt repayments have become the foundation of bankís billion dollar profits. Without such an easy income stream the banks would not be able to pay their CEOís million dollar bonuses every year. So do you really want to continue to contribute to this inequality? If not, then bury that and every other credit card deep in a safe place like a locked drawer.
If you absolutely need to use it, bring it out, and be sure to pay the full balance owing at the end of the month. Once the balance owing is paid off, it has been an interest free loan to you for the month. If you canít pay it off at the end of the month then you will be paying interests on the balance owed.