Many people have mounds of credit card debt and as the interest multiplies, it gets harder each day to make the minimum payment, not to mention the extra payments it will take to lower the balances. The trick to lowering debt lies in a change of mindset.
Just like solving any overwhelming problem, the best way is to take baby steps. How does one eat an elephant? One bite at a time. Permanent weight loss only comes slowly. Learning a new language begins with one word.
By taking small steps, behaviors change as the balances shrink.
- The most important step is to save at least five percent of the family’s gross income. Do not touch this unless unless there is an emergency.
- By now, we all know that ‘budget’ is not a bad word. Write out, on paper, every bill due this month. Budget a night out for the family instead of going out whenever the whim strikes. Every penny that is not needed for the budget should go toward paying your credit card balances. Soon the balances could be zero and the whole family can enjoy your improved financial situation.
- When things get tight financially, the family should also become tight: as in tight-knit. It is human nature to strike out at those closest to you, but if the family can stick together and support each other when things are tough, it can conquer anything.