Money Freedom Fridays - Make a Dent in Your Debt

 

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Make a Debt in Your Dent

I hear this frequently. "I just can't seem to make a dent in my debt. I keep paying and paying, but always seem to be in the same place."

This is likely due to the fact you are only paying the minimum amount. If you want to see a dent in your debt, you need to stop using the credit cards (altogether) and start paying more than the minimum due each month.

Why stop using credit cards? Because you are charging more each month than you are paying for the minimum payment. This means your balances are increasing and the credit card companies are charging you more interest. This is like going 1 step forward and 3 steps back. You will keep increasing your balance with more charges and more interest and barely reducing the balance with your minimum payment. If you don't have the "cash" to pay for it, don't charge it. 

Once you stop using the cards and the line of equity, you will want to pay as much over the minimum payment as you can. If you don't think you can't pay more, start by not going out to eat at restaurants... at all. Or at least until you have no more debt and can pay "cash". Or how about canceling the cable bill (average of $120/month) and spending time with the family outdoors or playing games instead of sitting in front of the TV? 

Now you have at least two ways to pay off more than your minimum on your debt payments. Apply what you would have spent on each of these items, directly to your debt.

If you need help to identify "hidden" money to pay off debt or how make the most impact making a dent in your debt, I can help with that.

You can master your money... and I can help!  

Contact Michelle Serna by filling out the Contact Me form to the right of this post.