Many consumers are struggling to manage credit card debt. According to NerdWallet, the average US household in 2015 had an average of $15,355 of credit card debt. It’s important that consumers learn to live within their means, spend and save their money wisely, and avoid reliance on credit to get by. It’s easier said than done, and a lot of people are already caught in a bad financial situation. In order to dig yourself out, here are some steps to help you manage credit card debt and improve your finances for the future.
5 Steps to Manage Credit Card Debt
- Figure out what you owe – Do not live in denial and allow your debt to pile up. Write down every debt you have as well as the amount you owe. With this information, you can create a plan on how to best go about paying off each debt.
- Organization is key – Pull all those bills out of the drawer and get your finances in order. Organization will help motivate you to create a plan to dominate your debt.
- Mark your calendar – Create a calendar devoted to payments. Mark when each bill is due on your calendar and cross it off once it has been paid.
- Look over your bills – Carefully examine your bills to see if there are ways you can reduce them.
- Reduce your spending – Shrink your monthly spending to help you get out of debt at a faster rate. Review your credit card statements to see where your money has been going each month. Create a budget using a budgeting worksheet and stick to it each month.
By learning to manage credit card debt, you can set yourself on a path towards a better financial future.
For more information on budgeting and debt management solutions, speak to a certified counselor by calling 800-769-3571.