1. Debt Bait
Shred those tempting credit card offers that often flood the mailbox. They offer everything under the sun from no interest for an extended period to free merchandise and gift cards. What these cards don't advertise is their interest rate after the promotional period or what comes attached to their gifts. There are 2.3 credit cards active for every man, woman and child living in the United States according to a study by the National Consumer Law Center. The report also states these cards use penalty fees, punitive interest rates and deceptive marketing to ensure people are ensnared in a cycle of debt.
2. Need or Want
How many times have you heard yourself or someone else say, "I want that new [fill in the blank]?" Too many wants will almost certainly push a person into debt. You need shelter, utilities, transportation, food and clothing; everything else is a want. Moreover, even some of those needs can morph into wants if you purchase a home or car that is too expensive and accumulate debt to finance the extravagance.
3. Set Monetary Goals
Notice I did not say budgetary goals, because everyone dreads hearing that word. Set a spending goal that is realistic and limits or eliminates the need for more debt accumulation. Check those receipts, find out exactly where the money is going and establish goals to curb the unnecessary spending. Maybe try to go an entire day without using the credit card. Then expand it to a week, then a month. Eventually you may be able to cut up those credit cards.
4. Seek Counseling
Sometimes you have to be strong enough to ask for help. If the debt is mounting and there appears to no way out, consult an accountant or credit counselor. Be sure to check out any service thoroughly because these services can do more harm than good. Organizing or consolidating your debt can have a great affect on your overall economic health because it can rescue you from those predatory credit cards that charge an incredibly high interest rate.
5. Negotiate
Realize that creditors are sometimes willing to negotiate a debt settlement figure. If you do not pay the debt, the company either will receive nothing or sell the debt to another company at a fraction of what they are owed. Therefore, if the debt becomes unbearable, ask the company if there is any room to negotiate the debt figure down to a reasonable amount.
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