Living with Out a Credit Card

Impossible you say? Not at all! Of course, you can keep one for emergencies or to book flights or whatnot, but this week, try to live on only cash.  Write down everything you purchase and then you can see where your money goes.

Millions of North Americans have an issue.  They suffer from credit card debt and are adding to it each and every month. These are the people that are living beyond their means and will eventually end up paying the piper. There are so many websites on the Internet that tell you how to deal with your credit card debt.  Another article says that Canadian credit card debt has jumped 2 million in the last year.  Why? Do we really need that stuff? Has shopping and eating out every day become hobbies or the normal thing to do? 

Do you have credit card debt? Are you overspending each month?  It is time to take control and do some number crunching.  If you find you are drowning debt, you need to put away your credit cards; give them a holiday as it were. Whether you cut them up, freeze them that is up to you, but the time to do it is now!

This is the first step in stopping credit card debt.  The second is see how much money is owed and to whom.  Call them and see if you can lower your interest rates and do a bank consolidation if necessary, but the goal is to pay off everything as soon as possible.  Some people even declare bankruptcy and if you have to, then do it.  Others even borrow from friends and family. That is up to you, but make sure you pay them back.

Thirdly, start saving for a) your retirement (if you haven’t already) and b) an emergency fund.  Also, if you need or want anything, start saving for it.  We have become such an instant society and rely so much on credit for our daily lives.  Our parents had to save when they wanted something, so why not us?  Set up a budget.  Figure out how much you want to spend on groceries every month, etc.  Of course, there are lots of frugal ideas out there that you can incorporate into your lifestyle  to get you on  the path to saving money and digging your way out.

When you are finally through paying off all you owe, you will be free and living debt free is the best feeling ever!