How To Handle Debt Efficiently Till The Very End
Here’s a hidden secret: making purchases on credit cards will result in you paying more for those items over time if it’s not paid within 30 days.
Or is it a secret?
There’s always a solution to any and every situation. Your past doesn’t determine your future and with the right strategy and mindset we can tackle your current debt situation. The mess that you may have put yourself in over the past few years can all turn around in the next couple of months. It will take discipline and commitment.
The Confidence Booster
When it comes to the re-payment plan you want to focus on the easiest target first to build your confidence. Although a mortgage may be your largest debt, selling the house may not actually save you money after you pay all the legal fees and such. As a result, it may potentially be putting you into a worse situation. Credit cards are probably the easiest debt to tackle and typically one to tackle first because of their high interest rates. The balance with the highest interest rate should be your first plan of attack.
Set payment goals
Paying the minimum amount on your credit card keeps the credit card company happy for 2 reasons. One, they’re happy that you made a payment on time, and two, they’re happy if you’re only paying the minimum because they keep collecting interest. That’s their primary source of income. Reducing or stopping your spending with credit is the first step. You can cut up the credit cards or freeze them. You can also freeze them literally in a bucket of water. The second step is to pay more than the minimum so that those balances start going down. Examine your budget to see where there’s room to reduce spending further, which will allow you to make higher payments on your credit cards and other types of debt. The extra discretionary income you were able to free up should all go towards one card while making the minimum on the others.
Balance transfers is another great strategy to reduce and eliminate debt. What you should be mindful of are the terms before considering this option. Terms such as: the fee for the balance transfer, the balance transfer interest rate, the length of time the balance transfer is valid for and the interest rate after the balance transfer promotion is up. This strategy is great because it minimizes the interest payments since your transferring your balance to anther card with a lower interest rate. Just be sure to run the numbers to determine if it makes sense for you.
Don’t punish yourself
The happier you are, the more abundance you can expect to flow into your life. Life is all about the flow of energy and if you are emitting positive energy, you can expect to receive positive energy back. When you smile at someone, you typically get a smile back. In saying all this, you’re still allowed to live happily. So you’ve made a decision and given your word to yourself to handle your current debt situation, which will soon be a thing of the past, know that you’re still allowed to live and enjoy life. Try this affirmation on, “I owed a lot of money in the past and paid if all off”. The subconscious mind reflects what it believes to be true in the present moment. So speak your debt into the past because your words create for the subconscious mind to replay out into the real world. Throughout the debt repayment process, you’re not restricted to a smoothie diet and forced to live as a cave-woman until all your debt is paid. Just live within a new means and budget. Take alternative routes home to avoid temptation for example. Staying in a positive vibratory state is essential to tackle this area of your life. You got this.