Do you have a high balance on several of your credit cards? When you have more than just two or three credit cards available, you'd be more likely to use them to pay for different items, which means you could end up with even more debt. If you've recently realized you've got more debt than you originally thought and you're having a hard time paying it all off because you're only paying down the minimum on each one, there are some steps you can take to get out debt. You don't necessarily have to file for bankruptcy or get on a debt management plan to solve your debt problem.
Start Budgeting
One problem many people have when using credit cards is that they're not paying enough attention to how much money they're making and how much they can afford to pay back at a time. You'll need to sit down and go through your income and expenses. You need to find out how much money is left after you've deducted all your monthly expenses, which may include rent, utilities, and groceries.
Once you see how much you're left with, you'll need to find out where that money is really going. There's a possibility you're spending a bit too much on unnecessary expenses, such as trips to the salon, takeout food, and more. Although it's perfectly acceptable to want to treat yourself from time to time, it's important to stick to a budget instead of living beyond your means. If you start budgeting your money and spending less on unnecessary items, you may have a bit more money to use for your debt.
If you can pay anything above the minimum, you'll save yourself money in the long run. Find out which card has the highest interest rate and focus on putting as much as you can down on that card each month. In the meantime, try to pay a bit more than the minimum on all of the other cards, even if you're only paying an extra $10 or $20. Anything above the minimum will help.
Close Cards You Don't Need
You may have opened credit cards at different stores because a sales associate offered them to you and it was hard for you to say no to them. However, the temptation of being able to use those cards to buy all kinds of items might be hard for you to deal with at times. If you know you're more than likely going to splurge because you have a credit card for one of the many stores you visit, consider closing the card. You can close any card you don't need so that you won't be able to use the card anymore, but you'll still need to pay off what you owe.
Keep at Least Two Credit Cards Open
Although you might be tempted to close all your cards to avoid swiping and spending more on them, you should keep at least two credit cards open. Closing all your cards at once could cause your credit score to go down at a fast pace. If you'd like to keep your credit score in good standing, keep at least two of the credit cards open, but make sure you're choosing the ones with low interest rates. You would be able to use them in case of an emergency, but you wouldn't have to worry about spending too much on multiple cards and getting into even more debt.
It's important to have some credit cards in your name to have good credit. However, if you're dealing with some debt, the best thing to do is plan out a budget based on your earnings and the expenses you have. Use the extra funds to put down more than just the minimum on those cards each month. Don't forget to close any cards that you don't need, but keep at least two open so that you have them if you need them.
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