Mismanagement of finances leads to debt. When you use credit card for your normal transactions on a daily basis, you may lose control of your expenditure and not monitor your spending power due to the credit limit facility offered by the card. In case of medical emergencies, layoffs or any other unforeseen expenses, you get into debt that becomes difficult or even impossible to repay easily.
Here are the top ways to eliminate credit card debt:
- Spend what you have budgeted: Tabulate the minimum expenses you incur on a monthly basis. Include your liabilities as well. This would give a clear picture of how much money remains with you to spend. Stick to this budget and do not overspend your money.
- Credit card bills: Pay off your credit card due regularly. Do not wait until you have reached your credit limit. This would put a big dent on your cash flow.
- Cash for transactions: Avoid swiping the card too often unless there is an emergency. Pay by cash so that you can monitor your expenses in a better way.
- Additional recreational expenses: Cut down long hours on phone and avoid dining out often in expensive eat-outs. Reserve these for special occasions. You would cherish the experience better!
- Weekly or monthly expenses: Mentally decide the maximum amount you would spend on a weekly or monthly basis and do not cross this limit for your normal expenses.
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