Have you succumbed to the lure of credit cards and found yourself in a bit of a pickle? Credit Card Debt is real and affects many people around the United States for years to come.
Pull up a chair and have a seat – Welcome to the ever-growing club of consumer credit card debt. Your biggest challenge now is to dig yourself out of this situation. We’ll show you how to avoid having to pay anyone to help you do it.
The options at this stage are usually as follow (depending on the level of credit card debt):
- Consolidate into a loan
- Debt Management
- Do Nothing
- Just pay off the cards over as long as it takes
- Make the minimum payments and keep spending
- Make an effective DIY plan
The more popular solutions – such as consolidation loans and debt management – put your money in other people’s pockets. In our opinion, becoming free from debt should not involve spending more money. Nor should it involve borrowing your way out of debt.
So how does a DIY system work?
To break it down into 5 steps it looks something like this:
#1. Address your spending habits and why you are in credit card debt
To have a comfortable financial future you have to control your money and not the other way round. Take complete control and set yourself some realistic yet desirable goals for the future.
#2. Know your options, the ins and outs of how they work, and why they are not for you
Along the way you will be tempted by quick-fix solutions like consolidation loans and debt management. As mentioned already there is a multibillion dollar industry making a very healthy profit from consumer debt. Your DIY plan does not involve paying to get out of debt.
#3. Know your situation
Any debt relief system requires a bit of budgeting. As long as you have desirable goals and no intention of taking an easy, you won’t have trouble budgeting.
The other thing to know is your credit score. There are a staggering amount of mistakes found on credit scores. These mistakes result in people paying more interest than they should. You could be eligible for lower rates and 0% APR cards to move expensive balances on to it. If that’s the case, then you need to know about it.
#4. Minimize outgoings, maximize income, and leverage your cash flow
If you could be paying less for utilities and day to day expenses, you should. There is a very fine art of money saving that you will become very good at if you’re going to be successful at this.
Home economics, consumer education and bargain hunting can save you incredible amounts of cash that can go toward paying off your debt quicker.
If you’re really serious you can take it a step further and create a secondary source of income.
With the opportunities available online, it has never been easier to find those who are seeking out some knowledge, experience and skills that you have and that they would pay you money for.
#5. Form your system and put it into action
Having followed the first 4 steps and laid some sturdy foundations, you are now in a position to develop a quite powerful plan. That is a system that gains momentum as you execute it.
This step is completely dependent on the first 4 steps and generating an extra figure that you can assign to snowballing your credit card debt. As the debts get paid off the figure grows and subsequently clears the rest of the debts a lot quicker and saving you a tidy amount of interest in the process.
It is very possible to use a DIY plan and enjoy great success from it. Yes, it takes a bit of hard work and discipline on your part. The alternatives just cost you more and keep you in debt for longer.
In conclusion, it is your money, it is your life. If you want to truly own them both then you have to take control and not give it over to someone else. Control or be controlled, the choice is yours.
About Pivot Credit Repair
Pivot Credit Repair helps individuals gain the financial clarity and credit repair assistance they need to achieve their goals. Get in touch for a free assessment today.