When you are drowning in a sea of credit card debt and you feel that Bankruptcy is the only option for you, you should look for all the options that can help you close the doors on excessive credit card debt. It is not that there are no ways in which you can make ends meet and repay your debt obligations; you just have to stay aware of the alternatives and make use of them so as to avoid facing the hassles of being called a bankrupt. Saving money is the best way in which you can repay your debt obligations and get back on the right financial track. Here are some financial moves that you can take in order to repay your high interest debt.
Make a list of your debts:
The first step that you can take is to make a list of your credit card debts including the principal amount, the interest rates and the due dates on which you owe money. Unless you know the total amount that you have to repay, you can never take the required steps in order to close the doors on the debt. Start off with the account that has the highest interest rate so that you can start triggering the highest rate account.
Craft a budget:
The most important job to follow when you are drowning in a sea of excessive credit card debt is to follow a budget. The budget is the best way in which you can maintain a track of the income that you earn and the expenses that you make from the income. Unless you follow the budget, it is impossible for you to make sure that you are on the right financial track.
Unless you save enough money, you can never repay your debt obligations on time. Irrespective of what you earn in a month, you should save at least 10% of the income so that you can build up an emergency fund with which you can repay your debt obligations without having to take out a debt consolidation loan or opting for balance transfer.
Stop buying things on credit:
You should stop purchasing things on credit so that you do not end up drowning yourself further in credit card debt. Once you go for shopping, you should carry cash in your wallet so that you do not splurge. Take out your plastics only when you’re urgently in need of them so that you do not unnecessarily incur debt that you have to repay in future.
Therefore, when you accrue excessive credit card debt, you should take the steps that are mentioned above. You need to manage your finances in order to be able to make the timely payments on your debt accounts and protect your credit score.