Your Debt Owns You

When I was 18, I applied for my very first credit and was approved.  Wow, I felt so lucky and excited.  For the next 15 years, I carried my high credit score around like it was a badge of honor.  Even though the debt I had racked up felt like a noose around my neck.

After so many years of making minimum payments, transferring balances and seeing a large amount of my monthly income go to my credits cards, I decided it had to stop.

I followed what I call a “5 Step Plan”.

Get Past “The I Need Everything Syndrome”

We are so conditioned to need things we really do not “need”.  I used to be the most compulsive buyer on the face of the earth.  What was the big deal?  One more charge thrown in with the rest of the balance was no biggie….right?  Wrong, you have to say no.  Once you do, you will truly feel empowered.  You will feel like you didn’t need all of that stuff in the first place.  You slowly realize the value of “things” and become more conscious of price.

Cut Up Your Credit Cards

I know.  This sounds insane and it seemed like it was to me too.  The thought of not having a credit card seemed crazy.  What if I wanted something?  What would I do?  Actually once your behavior changes, you will quickly realize credit cards are not necessary.

Don’t Fall For Scams

When a company offers you 15% savings for using their credit card or any other offer that seduces you into using credit, just say no!  It’s very rare you save money and in fact, in most cases, it ends up costing you more. 

Develop A Budget

It’s a scary word but you have to do it.  It’s not that bad.  After a month or two, you will have clear vision of your finances and really feel like you are in control.

Have A Big Picture

Part of getting out of debt is seeing the big picture…the 3-5 year plan, if you will.  With a big picture, I found it easier to stay on track.

Do you have a credit problem?

You may be wondering if you have a problem or not.  Here are some tell tale signs:

• You pay the minimum on your credit card balances
• Your charges for the month exceed or equal your payments
• You convince yourself the next raise you get will go towards the debt but continue to raise your debt.
• Your overall debt balance is higher than last year.

Tim Smith is a writer for www.Reduce-Debt-Help.com.