Stop Spending and Making More Debt After Debt Consolidation

October 14, 2011 by  Filed under: Debt 

One of the golden rules to managing your money is to use cash whenever possible instead of bank / credit cards as you may find there comes a point in your life where you are swamped with numerous debts that you can’t afford to pay. If this sounds like you then don’t panic to much as throughout this article we will be discussing steps to help you get out of your debts.

First of all, just like I mentioned above, use cash whenever possible instead of bank / credit cards. Every single time you pay with plastic all you are doing is making your debts worse. Not so convenient now right? This can be a hard thing to do but you can start off with small things which you pay with in cash or with a debit card such as food and fuel for the car.

With this piece of advice you will find yourself spending much less that you would have done if you were paying with the likes of a credit card and you won’t owe any interest either so you’re a winner. Be patient and work your way up and soon you will be able to rip up any of those credit card invites that come through your door.

Credit cards and bank cards may seem like an easy and convenient option but it’s important to realize that this piece of plastic will do nothing more other than put you deeper in debt so avoid using them at any cost. Did you know that most people with debt problems are in debt due to credit cards and bank cards? With plastic, it’s much easier to spend more than what you can afford as you’re not physically seeing the money but with cash in hand, it’s impossible to spend more than what you can afford.

When it comes to paying off your credit card bills, you will need to review the bill statements to see exactly how much you own on each of the credit cards you have. If you can manage to pay the whole amount at once then great, you should do so to prevent further costs and creditors harassing you with constant telephone calls and reminder letters. If you can’t afford to pay it all at once then don’t worry as you will be able to arrange some sort of repayment plan which you can afford. You should always aim to pay what you can when you can afford it but just remember not to take out any more loans just to pay of these loans. If the situation is really that bad then you should seriously consider debt counseling.

Although a credit card company will never clear your debts for you, it may be worth giving them a call as they may be able to lower the interest rates that you are paying if you prove to them that you can’t afford what you’re paying. More often than not, they should be able to help you here so it’s well worth a try if you want to reduce the costs as much as possible.

The author helps South African citizens to get out of debt with the help of debt counselling. To read more visit

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