Are you still paying just the minimums on your credit card payments? If that is all that you can afford to do, then you need to begin immediately to change your financial picture. You are too close to a financial disaster. If you have the extra money, but you are not paying it, then you should step back and look at the bigger picture.
Recently the credit card companies have doubled the minimum payment due each month. This will help you to get out of debt much quicker. But if you continue to pay just the minimums you are going to lose a lot more money to interest than if you paid it off much more quickly.
Since a credit card is a revolving line of credit, you may not realize the impact that it has on your budget. You may feel comfortable to continue putting money on it, as long as you are able to meet the minimum payments. But what happens when you can’t? Usually you are on the edge of vicious cycle where most of your income is going towards debt repayment and your are putting your daily needs on the credit card.
You can prevent this by making getting out of debt, especially credit card debt, a priority. Often you think of the things that you will do without in order to get out of debt. You may put off buying a new couch or the big screen television. It may mean that you cut back on the new clothes that you buy, but once you have all the extra money available in your monthly budget, then you will have real spending power and a lot less worry.
Although you may need to temporarily take on a part-time second job or find other ways to save or make money, you will find this period of sacrifice will greatly benefit you in the future. These steps can help you to permanently change the way you feel about money. These changes may help you to have a more comfortable future, in which you have more control of your life.
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