How Do We Eliminate Credit Debt

September 5,2018 by  
Filed under , Living Debt & Credit Free

It’s not as easy as it used to be to eliminate credit debt. Getting ourselves behind is much easier than getting ourselves ahead. With the rising cost of living and smaller raises, it’s not hard to accumulate debt. Sometimes, it’s so hard to understand why we just can’t seem to make it. Last month, we got a $.25 per hour raise but it just doesn’t seem to help much. What we don’t comprehend is that at the same time, our cost of living took a raise also. Inflation for living expenses rises faster than our raises on our paychecks. For every raise that we receive, cost of living has already risen triple that. What the government doesn’t tell us when making it mandatory for minimum wages to go up; they have already passed bills for increases in utilities, interest rates and groceries. Having credit debt is a way of life for us real people that have to live day-by-day and paycheck-to-paycheck. Even though we live like that now, we should strive to eliminate credit debt  so we can guarantee  ourselves a better tomorrow.

To eliminate credit debt, we have to first figure out what we pay and why we pay it. If it’s not something that we need, why pay for it? If you pay $59.99 for cable when you can have Netflix for $15, why do you still have cable? I’m not saying that it’s not nice to have it. It is something that you can do without for a while to get caught up. It is much easier to tackle the smaller bills than it is to work on the bigger ones at first. Cut back on water usage and turn off lights and other appliances when not in use to lower energy costs. If you are paying on several smaller bills at one time, try consolidating them. The money that you save on these can be put towards something else that you are paying on. It’s nice to have the convertible sitting in your driveway that costs you an arm and a leg. But, you can trade it in on something cheaper and costs you less in insurance. It is much nicer to make these choices on your own than someone else telling you that you have to by them turning them off or repossessing them. Downsizing your home is a decision that seems extreme when you think about it, but sometimes what we needed years ago may not be what we need now and you might just be surprised at how easy it is to get used to something new. A smaller home can mean cheaper energy, maintenance and payment costs for you and your family. This can allow you to spend your hard earned money on other things.

Going without seems harsh sometimes. But for many of us, it may not be a choice that we voluntarily make. If you can control your finances on your own, we commend you on your abilities. For the rest of us that have considerable less discipline,  it takes a lot of hard work for us to be able to eliminate credit debt .

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