Paying Off Debt Tips - 3 Things to Avoid
If you're looking for tips on paying off debt, below are 3 often-overlooked spending tips that can save you money and help you get out of debt more quickly. These 3 things to avoid stem from questions we hear all too often, but there's a lot more we can help you with. For a much more in-depth dive into this topic, have a look at our popular 10 tips for paying off credit card debt.
You might be wondering what the questions we hear are, and if you can ask us something similar. We'd be happy to answer your questions! Please contact us and we will get back to you with information and guidance. While everyone's circumstances are a little different, there's a lot we can learn from the tips that make money management easier.
To Pay Off Their Credit Card Bills, this Couple Realizes That They Must Make Some Changes
Here is the Question: My partner and I were going over our credit card bills the other day and realized that despite our best efforts, we won’t be able to make all of our payments. We aren’t even sure how the balances got so high because we don’t feel like we spent that much. In the past when we’ve noticed that our debts have become difficult to pay off we’ve just cut our spending back to pay our credit cards off faster. That however, won’t be possible this time because my partner is still on parental leave with our youngest so we’re working with reduced household income. What other tips can you suggest to help us pay off our credit cards? ~Jody
Answer: As you may have observed — and the same thing is true for a lot of people — debt, essentially credit card debt, doesn't just happen suddenly with one large purchase. It happens with a series of small purchases during a stretch of time, even a few years, that pile up to more debt than they can manage to repay.
There are tons of strategies and tips that can assist you in eliminating your credit card debts, but one of the best secrets is often ignored: paying down debt is as related to how you think as it is to how you manage your money. With this focus, here are three things to keep away from if you are serious about paying off the debts that you have:
1. Avoid Mindless Spending
As essential as it is to have a realistic spending plan, think carefully about what you spend. Really consider how much income you earn, what your financial goals are, and what it will take to attain your goals and pay off debt. Also carefully differentiate between your needs and wants whenever you buy something.
Try to get your mind in sync with your finances to make your spending planning simpler. Once you've decided to paying down the debts that you have, it becomes a lot easier to move forward with strategies to make that goal happen. A solid plan to pay off what you owe calls for a budget. Begin with a rough outline and complete the rest as you learn more about how you spend your money. A spending tracker will help you keep an eye on where your money is really being spent and identify habits that will hinder you from achieving your goal. Then a budget calculator spreadsheet or workbook will help you put together the big picture. Carefully managing your pay cheques so that all the money you receive is used in ways that will help you reach your goals is really important.
To reduce your debts and pay them off will require time and persistence. That's why contemplating every purchase you make is really important — and yes, this is one occasion when it's important that you pay close attention to the small things.
2. Don't Keep Detailed Payment Info in Online Apps and Accounts
With several quick clicks, you've confirmed your order. Sound like something familiar? If you're someone who keeps credit card or detailed payment info (e. g. PayPal) in your online applications or accounts, perhaps you are your money's greatest enemy. For your bank accounts and credit cards, not to mention for security reasons in addition to your budget, it's better to stay away from storing detailed payment info online. All additional steps that cause it to be just a little more difficult to spend without thinking twice will help put more distance between you and the checkout. The bottom line is protecting your money from yourself.
3. Steer Clear of Signing Up for Emails that Entice You to Spend
Email marketing is a profitable business and a large number of people get more promotions and specials sent to their inbox than they could ever conceivably need or want. Rather than just deleting these emails, unsubscribe from them so that you no longer feel enticed to purchase things you don’t have the money for.
Vacation packages, cruises, promotional offers to get bonus loyalty points, Groupon-type promotions, or weekend deals at specific merchants, are all examples of emails that attempt to persuade you to spend more than what your budget permits. If you're not ready to eliminate what really amounts to electronic flyers from your email inbox, create a different email address to use for marketing emails. Then only check on that email account when you have money saved up to spend.
What You Need to Know About the Best Tips to Pay Off Credit Cards and Other Debt
When it comes to the best tips to pay off credit cards and other debts, do what works for you. Exercising self-control with how you spend your money is hard, but working away at it every day is good to do. Adopt the motto: progress, not perfection. The negative effects of feeling buried under the debts that you have can affect your own well-being along with the well-being of your spouse and kids. Spend time working on this together. The process of getting back on course will help develop money skills that can last a lifetime. It's a legacy you can be pleased to pass on!