How to Get Out of Debt - Lose the Credit Cards
Are you looking to lose some of your debt? Maybe you need to improve your credit score so that you can finally purchase a home or the car of your dreams. Maybe you just need to save some money for retirement or perhaps you are tired of having the shadow of debt looming over you at all times. No matter what your reason is, cutting back on the amount of debt you owe will prove beneficial now and in the long run. While the idea of living debt-free is nice, it is not something that simply happens overnight.
When it comes to getting out of debt, the first thing that you should do is work to get rid of your credit cards. A heavy reliance on credit cards is one of the biggest downfalls that we, as a society, have. Spending money with a credit card is easy since it is almost like imaginary money. When you use cash you will actually see the money changing hands but since the transactions occur in the digital space with credit cards, it is a lot easier to lose track of how much money is being spent and how much money you actually owe.
That is not to say, however, that everyone has a problem keeping track of where their money goes when it comes to credit cards. If you find that your credit card spending habits are getting out of control then you may find that is necessary to take extreme measures in order to prevent yourself from using them. Whether that means that you cut the cards up, hide them in your freezer or bury them in the backyard, you will need to avoid them at all costs until you can get your spending and debt under control.
Not using your credit cards does not mean closing your accounts. Closing your accounts can actually have a detrimental effect on your credit score. The best course of action is to stop using them until you can pay them off. Not keeping your credit cards on you at all times also prevents you from making unnecessary impulse purchases. If you make an effort to save the money so that you can pay cash for a particular item it will be much easier to determine whether or not it is a necessary purchase or something that you can live without.