Table of contents
Many individuals struggle with managing debt. Consumer debt is a profound issue in the United States, with US consumer debt at a whopping $13.86 trillion. The average American under thirty-five years old is in $67,400 worth of debt, and the average American between ages 35 – 44 is in $133,100 worth of debt.
Debt is an unfortunate reality for most of the US public. However, there’s something that can be done about it, starting now. While services like Strategic Consulting are ready to help consumers manage their finances, people can start doing things on their own. The following are five ways to stop debt from controlling your life:
Cut Back on Non-Essential Purchases
While there are many options out there for debt consolidation and credit repair, one of the most useful ways to manage debt starts in the consumer’s own home. Americans are infamous for exorbitant spending – it is, after all, a nation characterized by consumerism. Should you take time to draft up a financial budget to limit spending on extraneous items, you are liable to save thousands per year.
You may consider if your routine trip to the shopping plaza is necessary. Can you afford to purchase groceries at the local discount store rather than the health food market? It’s your choice as to which needs to prioritize in your spending, but if you genuinely want to keep debt from controlling your life, you may want to draft up and adhere to a budget plan that limits excess spending habits.
Limit Credit Card Usage
Stop. For millennials in the United States, credit card debt amounts to twenty percent of total debt owed. It’s so much easier to purchase with imaginary money than it is with cash in hand. Though it’s easy to imagine that credit cards are real forms of funding, they’re more like a promise to acquire funding today and pay it back later. It is imperative to limit credit card spending only to what purchases are necessary. Should you have to use a credit card for essential purchases, consider seeking out government aid in the form of food stamps or cash assistance before taking out a credit card. When you make credit card purchases, it’s advisable to pay off this credit card purchase at least monthly.
Most contemporary banking applications will allow you to check the next due date for your credit card payment easily. When you adhere to these scheduled payment dates, you improve your credit score and are liable to qualify for loans with lower interest rates in the future.
Refrain from Small Purchases
A snack purchase in the grocery store line may be minimal in and of itself, but if you find yourself engaging in purchases like this time and time again, those dollars can add up. Exponential small buying choices can lead to accruing more debt through the seemingly confounding loss of small amounts totaling larger ones.
Make Budgeting a Part of Your Routine
While it is easy to view debt through a lens of dread, seeing finances as a positive subject helps ease financial woes. Create a written budget for your week rather than avoiding looking at debt. Be active in your debt recovery process.
Create Your Budget
There is much to be said for allowing oneself to regain sovereignty over debt. Doing so requires the drafting of and adherence to a detailed, itemized budget.