Is that the way you do your budget plan? Do you even
balance your check book? Maybe you can't even find your
check book? Do you even have a budget plan? Do you
understand where your hard earned cash is going? Does your
debt keep increasing and you have a runaway debt train on
your hands? Do you just pull out your credit card and never
check the balance till the credit card is denied? Do you
use the credit card for another swipe into debt?
Most consumers have no idea how much debt they are in,
until the credit card debt is too high to pay down. Then
they transfer the credit card balance to a lower interest
rate card. Problem is, many people will start using the
card they just paid off, increasing their personal debt
more. This action of not planning and keeping a budget plan
causes another ugly mark on their credit score and
increases personal debt to a level they eventually are
unable to maintain. Then is not the time to start a budget
plan, but that is when many people realize their debt load
is crushing them and have to find a way to solve it. Some
solve it by bankruptcy, some by debt consolidation and some
by making a debt reduction plan and working their way to
the surface again.
Most people continue their debt spending ways till the
decision is so large and agonizing that they do not want to
handle it and then destroy their credit for many many
years. You don't have to go that far before it is too late
to handle your debt, take the time now and look at your
credit card statements. Don't apply for new credit cards;
watch out for the credit card enticement of moving your
credit card balance from one credit card to another. If
you do move your credit card balance to another credit card
to reduce debt, make sure you never, ever charge on that
old credit card again. Remember when you open up another
credit card in the hopes of removing debt, you just caused
an action on your credit score and it is usually not a good
action.
But your debt can be reduced by looking at all your bills
and debts. You might have heard to pay off the debts with
the highest interest rates. That's old school because most
people lose focus or get depressed because the highest rate
could be a large debt you're trying to pay off.
I have found that the best method is to pay off the
smallest debt first, this way you can see progress. Once
you pay off that bill take all the money used to pay down
that debt and apply it to the next bill plus what you had
been paying on that debt. Before you know it, the debt will
shrink and you'll be less stressed from the shrinking debt.
Maybe then you can spend a night on the town without
worrying about how to pay for it.
----------------------------------------------------
MJ Jensen has studied Real Estate from the Homeowners
perspective for over 20 years. He provides tips on mortgage
problems, and understanding debt and credit solutions for
consumers. You can visit his site at
http://www.stopbankforeclosurestips.com/free_report
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