One of the best New Years resolutions that you can make for yourself is to be debt free in 2014. To some this may seem like an insurmountable challenge when they see that each month no matter how hard they try the credit card bills seem to increase. There are some small things that you can do throughout the year to accomplish your goal if you really commit yourself. Here are some tips and techniques to help you to your goal of debt freedom in 2014.
One of the first things you should do to avoid unnecessary credit card debt is to carefully review your statement. If you see small charges for gasoline, fast food, and small ticket items that you are not able to pay off on a monthly basis, then it is time to change your spending habits. Using the credit card is so easy that you find yourself using it for just about anything. The problem is you are paying interest on all those charges. So add up a years worth of fuel purchases and add 20% interest at a minimum, and you easily tossed a few hundred dollars out the window. Pay cash for fast food, gasoline, and any small purchases. That extra couple hundred dollars can help pay down your debt.
Take the extra money that you will have from not paying interest on those small purchases and stop paying the minimum on your credit card debt. If you are even going to get the debt under control you have to pay more each month to cut down the debt and save you all those extra dollars you are paying in interest. Give up a cup of coffee a few times a week and take that fifty dollars a month and pay more towards your card debt. If you want to be debt free you must change your spending habits today so by this time next year you will be free of the control of those credit cards.
If you have multiple credit cards it might be time to consolidate them to one card. Many card companies will gladly help you to transfer the debt from other cards. Pick the card with the lowest interest rate or negotiate with one for the lowest possible interest rate. Then you have one bill each month and you can actually see how your efforts will make a difference. If your minimum bill for your new balance is $50, start paying $100 a month. You will chew that debt down much faster and pay less interest in the long run. Start looking for ways to save money each month and pay even more of the debt down each month. You will be surprised if you stick to the plan how excited you will feel when you stop being controlled by your debts and you become in control.
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