October 19, 2021 6:19 pm

Follow Simple Credit Debt Advice and Be Money-Smart

Twenty and bankrupt? Sound scary? Being twenty should mean dreams, brand new career, energy, fun and growing bank accounts! But debt and bankruptcy have become a gloomy reality today. Just check this statistic: nearly one quarter of all the bankruptcies filed in recent years were by by consumers under the age of 25. But why? Let’s try and assess.

You are pursuing graduation. You own one or more credit cards. You are fun loving, swanky and smart. Sale at the fashion store, https://www.thecreditrepairblueprint.com/smart-and-simple-credit-card-tips/ pizza and beer, coffee shops, fun with friends – why miss out on any of this when you have money? Plastic money, that is. What next? You are in a load of debt before you realize it. Every month you have multiple payments staring you in face. You are at loss for how to deal with the creditor calls. No solution? There’s one – bankruptcy. So you were fun loving, swanky, smart – but now bankrupt with low a credit score harming your job prospects and a bleak financial future.

You don’t want this to be your story, right? Being debt free is possible. You just need discipline, self control and the right credit debt advice. Here are the five most simple and effective tips on how to get out of debt:

1. Let’s face it. Escapism is no escape route from debt. If you believe that ignoring debt will someday make you debt free, it’s a myth. Don’t run away – face the situation. Accept your mistakes. There is always a way out. You just need to take the right steps and get the right advice on credit card debt. Discuss with family, friends or debt help counselors and start right away.

2. Start now. If you believe that putting off your debts until you are forty is the best way to live a stress free life today, think again.
* Mounting debts can harm your credit ratings; your debts will become more expensive.
* You will most likely only qualify for a small mortgage when you plan to buy a house. Your dream house might just remain a dream.
* Paying for enormous debt could leave you with nothing much to save. What will you do when you retire?

So start before it’s too late.

3. Pay more than the minimum. Did you know that if you keep making just the minimum payments on the average credit card debt of $3,262 accrued by college graduates, you end up paying more than twice the actual amount spent by the time you pay the last instalment after 18 years? It is worth to pay $20 for the dress you purchased at the sale price of $10? So banish the myth that by paying the minimum you are actually repaying your debts. With accrued interest, your debt is growing larger and the credit card company is pocketing all the money. You can better utilize this money as an investment, saving or even spending. Plan today to repay all your outstanding credit card balances.

4. Budget. How many times have you looked at your credit card statement to assess the where’s and how’s of your expenditures? How many times have you noted that your expenses exceeded your income at the end of the month? If you are really serious about avoiding debt or overcoming debt, you must follow this credit debt advice as a habit.

 

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