Most people are aware that they often pay a bit extra for convenience. Credit card company depend on that. We have trained ourselves to feel entitled to “treat” ourselves. We get the “I worked hard and I am doing this for me” mindset, and the only one we are hurting is ourselves.
- Tame the credit card beast
We will grab the plastic because we do not have to worry about the bank account getting too low before the end of the month. We know it is careless to use an interest-charging card to buy a burger meal, but we give it little thought beyond that.
Most of us would walk away if we went in for a burger, fries, and drink meal and saw a price of $9.08. But, when you use your credit card that charges 19% interest and you take 3 years to pay off your card, you are paying not $9.08 for your burger meal. If you are going for a $50.00 family dinner, the end cost would be $65.88.
- Not checking your credit card statement
Many people do not check their credit card statement unless something major jumps out at them. Many times they do not save receipts to reconcile the statement. They think they can remember. In recent years, people have become concerned when they hear about a large company like Target being hacked and their payment information compromised. But it is the smaller issues that will hurt the most.
Here are some small charges and errors that cost you big:
- You signed up for something online with a 30-day free trial and forgot to cancel before the date expired.
- You thought you were making a one-time payment, but the charge is recurring.
- Someone used your card for small purchases. With all the activity on your credit card statement, you may not notice a $20 charge every now and then.
- Waiting too long to address the problem
You know you are out of control. You are using one credit card to pay for another. Your salary barely covers the minimum payments. There is no money left for basic necessities. Creditors are beginning to call. Payments are being made a little later each month. Sometimes you have no choice but to pay a late fee and by this point, you are probably paying an over the limit fee as well.
- Getting help
As soon as you see this turning, seek professional help. Counseling is available from financial advisors at MY WEALTH SOLUTIONS . They can present you with all of your options. The longer you wait to stop the bleeding, the harder it is to survive.
Other ways to recover
- Do not ignore your credit score. It is a critical player in the game. It has a hand in determining your interest rate, insurance rates, and mortgage rates. It can affect your ability to advance in your career.
- Ask for lower rates. There are times when lower rates are available if you simply ask for it. This can be done for a credit card, automobile, mortgage and other large ticket items. You may have to refinance to get it, but it will save you well more than your time was worth.
- Do a car insurance checkup. Many people never compare with another company. They just stay with the same company for decades. When your cars are aging, you can possibly raise your deductible or drop collision to lower your insurance payments.
No matter where you are in the sea of debt, you can get out. You can make a workable plan that will place your feet on solid ground – start a debt snowball. This will lead to financial security in the future and a lot less stress in the present.