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If you are in debt, you are not alone. Eighty percent of Americans are currently in debt. Many of them are in debt due to homeownership, but credit card that plays a huge role as well. If you have amassed a significant amount of credit card debt or similar debt, it can seem like an almost insurmountable obstacle. After all, the spending habits that led to all of that debt are a part of the problem as well, and you have to stop those spending habits in order to even have a hope of paying off that debt.
Many people end up stopping these spending habits not out of choice, but out of necessity. They simply stop using their credit cards because they have maxed them out and do not have the option to continue making purchases on these cards. However, if it is possible, you want to stop using your credit cards excessively before it gets to this point. Credit cards should be seen not as a connection to a whole lot of free money, but just as a method that can be used for short-term borrowing when you do not immediately have the funds to pay for something that you need. The goal should always be to pay off your credit cards every month, so you do not end up having to pay them a huge amount of interest in addition to your principal balance.
The same guidelines apply to other forms of credit and borrowing. Those taking out monthly installment loans, while avoiding predacious payday loans, are still going to want to pay the debt back on time and as fast as possible to reduce the amount of interest paid.
Paying off debt can be a challenge, particularly if you do not have employment or do not make enough money to be able to make ends meet, let alone paying off debt in addition to your current basic expenses. However, depending on your situation, it is usually not impossible to pay off debt. You just need to be extremely frugal and responsible with your money in order to be able to make a dent in your credit card balance.
One thing you can do to help you pay off debt in the most efficient manner possible is to focus on the high-interest credit cards. These are the ones that are gaining the most interest with every passing day, so these are the ones that you should focus on paying off first. What you should do is look at the interest rates on all of your credit cards and loans and make the highest payments towards the ones that have the highest interest rates. Of course, you cannot put all of your money towards this, because you will have to pay the minimum payments on your other credit cards and loans as well. If you have excess money though, it should go towards the credit cards and loans with the highest interest rates, because this will be the most effective in reducing your overall amount of debt in the long run.
Being in debt is not a desirable situation. However, most of the people who are in debt never planned to be in that situation. Additionally, once you are in the situation, you cannot turn back time. The best thing to do is simply to make the best of what you have and manage your debt in the best way that you possibly can. If you make it a priority to pay off the debts that come with the highest interest rates and are extremely responsible with money, you should be able to pay off your debt in a reasonable amount of time. Once you do this, you can enjoy your financial freedom.