Free Yourself from Credit Cards in 10 Easy Steps

There are numerous people who use credit cards to make purchases on items that they are unable to buy with cash. One of the problems that a lot of these people face is credit card debt that continuously climbs higher and is harder and harder to pay. The good news is there are several effective ways to decrease spending and eliminate problems associated with credit card debt. Below you will find 10 simple steps that make freedom from credit card debt much easier to achieve.

  1. Be committed to change – The best budget in the world will not be helpful if a person does not stay committed to making changes in their spending habits. To gain financial stability, it is essential to change old behaviors.
  1. Record purchases for one month – It can become frustrating while tracking every cent that is being spent but this is a step that can also be extremely beneficial. When a person is able to see on paper exactly how much is being spent for things like recreational activities or eating out, they can quickly see where adjustments should be made.
  1. Do away with credit cards – The fastest way to begin repairing the damage that credit card debt can cause to finances is stop using them, even if this means canceling accounts. It can help considerably to only make purchases that can be paid for with cash.
  1. Don’t be influenced by marketing – It is the job of companies to grab the attention of buyers, whether it is for items that they need or not. If a person stays on-guard for the advertising tactics that are used to draw buyers in, they are less likely to fall for these tactics and spend money on things they do not need.
  1. Transfer credit card balances to cards with lower rates – When a person has several different credit cards, a large amount of money can be saved just by transferring each of the balances to a card offering the lowest rate of interest.
  1. Lower credit card balances – When there is money left over at the end of each month, it can help tremendously to reduce credit card balances by applying this money to any balances that are outstanding.
  1. Decide to only purchase items with cash – While a lot of people would like to make all their purchases with cash, very few people actually make this a conscious decision to stick to. By avoiding the use of credit cards by using cash for purchases and applying all extra cash flow to the balance on these cards, debt will begin to decrease in no time.
  1. Stash other credit cards away for safe keeping – For some people it is much easier to avoid the use of credit cards if they are not easily accessible. One handy tip that some people use is to freeze credit cards in a bowl of water so they aren’t nearly as handy to use.
  1. Make a fund for emergencies – When an emergency fund is created, it is beneficial to use a savings account that brings in a high-yield. When budgeting allows for automatic deposits to be made to this account, it will grow in a very short amount of time.
  2. Notice monthly progress – By taking a few moments to review the results of your efforts, it can help to keep you focused and on track. While progress isn’t generally something that is visible immediately, it will come in due time by sticking to each of these tips.

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