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Are you drowning in credit card debt and want the success of debt elimination?
According to statistics, consumer debt for Americans is now averaged at approximately $10,000 per person, not including home mortgages.
These are staggering statistics.
For many single moms, debt has become a crisis.
A vast number of people overall, have adopted faulty reasoning when it comes to purchasing goods and services.
If you can afford the payment, you can afford the item.
What many of you are discovering is that you cannot afford the item on payment.
Are you aware that credit card companies are notorious for luring in new customers with low rates, and then raising those interest rates to astronomical levels when a payment is late or missed.
Credit card companies and banks can raise your interest rate even if you are late paying an unrelated bill.
They can simply declare you to be at risk, thus justifying a higher rate.
Remember the Rule of 72.
Just divide the percentage of interest you are paying into 72 and you will find the amount of years it will take for your debt to double.
At interest rates of 18 percent and beyond, the time debt takes to double is very short.
It is clear that debt elimination can never be achieved while paying exorbitant rates of interest due on credit cards.
Debt Elimination Must be a Priority
Debt elimination must be a priority if you are to gain control of your finances.
Here are several key steps that will lead to debt elimination.
First of all, you must make a commitment to stop buying on credit.
I highly recommend you undergo “plastic surgery.”
By that I mean you cut up your credit cards or melt them in a oven set at 400.
If you lack the self-control necessary to cease buying on credit, you must get rid of your ability to do so.
Cut Up the Credit Cards for Debt Elimination Success
Many single mothers argue that they must keep at least one credit card for such necessities as hotel and airplane reservations, gas purchases, and so forth.
That's what credit card companies want you to believe, but it isn't true.
That's what credit card companies want you to believe, but it isn't true.
From my own experience with debt elimination, I do not have one credit card to this day because a debit card and/or prepaid card works the same way a credit card does, without using borrowed money with ridiculously high interest rates.
All banks issue debit cards that will accomplish all of these matters, and the money is drawn directly from your account as opposed to being placed on a line of credit.
All banks issue debit cards that will accomplish all of these matters, and the money is drawn directly from your account as opposed to being placed on a line of credit.
If you have the discipline to use a credit card and pay off the entire balance each month, then you may find it an advantage to do so.
In essence, you are using the credit card company’s money as a free loan for 28 days.
You must pay off the entire balance within the grace period or finance charges will obliterate this financial advantage.
By creating multiple sources of income online, there will be no need to have credit cards.
Secondly, if you currently have consumer debt, you must adopt an aggressive strategy to pay off those bills.
I recommend you create an debt elimination worksheet.
On your worksheet, you list your debts, excluding home mortgages, in the order of smallest to largest payoff balance.
For now, do not consider interest rates or other factors.
Just list your debts small to large.
Once you have your debts listed, continue to pay the minimum payments on all your debts to keep things current, except for the smallest ones.
Instead, focus all your financial resources on eliminating that bill.
Every extra dollar you can find should go to paying it off.
Have a yard sale, get a part-time job or develop a home business, and focus your attention like a laser on paying off that balance.
Once that bill is eliminated, move to the second smallest and do the same.
You will now have the added resource of the money previously given to the debt you have paid off.
In this way, you will move through your debt, building larger payments and greater momentum as you go for debt elimination success.
Do not stop until every debt on your list is paid.
That is exactly how credit-counseling agencies instruct you to do it too.
I know, because I’ve been there.
Resource for Debt Elimination Success
Related: Dave Ramsey, in his best-selling book,The Total Money Makeover, describes the benefit of a Debt Snowball.
Lastly, most debt can be avoided if we learn to live within our means.
Lastly, most debt can be avoided if we learn to live within our means.
That takes self-control.
Self-control is an absolute fundamental for wealth, growth and freedom.
Commit today to control your spending.
Refuse debt.
In my case, I prayed and asked God for creative ways in which I could increase my income for debt elimination.
You can have debt elimination success.
You can do this!
Begin today and you will be one step closer to the dramatic wealth-building opportunities that come when you have achieved debt elimination success.
Thank you for reading. Please leave a comment and share the post.
Thank you for reading. Please leave a comment and share the post.
