Getting in to debt is all too easy these days. We live in a culture of "enjoy it now" "invest in yourself now" "live now" - with credit card companies advertising to students with promises of a "low interest rate" you'll easily be able to pay off your balance. In reality if you overspend $100 every month after ten years that's $10,000 of debt. Let's face it, $100 doesn't go very far these days - that could be a night at the movies and extra groceries in a month - just put it on your credit card - in a few years you'll be making a big paycheque and you'll pay it all back.
In reality, once you finish school you may have to intern for a while or get an entry level position where you have just enough to cover your living costs - and an extra 100 to pay off your credit card - but now the credit card bill is increasing exponentially and you don't have enough money to pay it. Sound familiar?
If you have missed a lot of payments and can't look at your statements and feel that you will never get a mortgage, you'll never get credit ever again - chances are it's not too late to turn things around - and you are reading this, right? So you are motivated to do something about your debt.
Paying off debt doesn't have to be hard- you may have to quit some habits - like buying coffee every day - $5 every work day is about $1250 a year. Wouldn't you like to see your credit card bill be $1250 lower?
You are going to have to take a magnifying glass to your expenses and your debt - and you will have to do this every couple of weeks or months - forever - that's right - staying on top of your debt is a commitment like eating properly and taking care of your health. You wouldn't accidentally eat an extra 3000 calories over a one month - but you might before you know it spend $3000 in a month.
I have put together a step-by-step list of ways to pay off debt and build credit below that can help you to get out of debt and take control over your finances. There are a few rules that you need follow.
1. Never cancel a credit card
-only if the card has a ridiculous annual fee
-Your family members, your friends at work - everyone will tell you that you have to cancel your credit card once you pay it off - but in reality this is a very bad thing to do because it will drop your credit score
In reality, once you finish school you may have to intern for a while or get an entry level position where you have just enough to cover your living costs - and an extra 100 to pay off your credit card - but now the credit card bill is increasing exponentially and you don't have enough money to pay it. Sound familiar?
If you have missed a lot of payments and can't look at your statements and feel that you will never get a mortgage, you'll never get credit ever again - chances are it's not too late to turn things around - and you are reading this, right? So you are motivated to do something about your debt.
Paying off debt doesn't have to be hard- you may have to quit some habits - like buying coffee every day - $5 every work day is about $1250 a year. Wouldn't you like to see your credit card bill be $1250 lower?
You are going to have to take a magnifying glass to your expenses and your debt - and you will have to do this every couple of weeks or months - forever - that's right - staying on top of your debt is a commitment like eating properly and taking care of your health. You wouldn't accidentally eat an extra 3000 calories over a one month - but you might before you know it spend $3000 in a month.
I have put together a step-by-step list of ways to pay off debt and build credit below that can help you to get out of debt and take control over your finances. There are a few rules that you need follow.
1. Never cancel a credit card
-only if the card has a ridiculous annual fee
-Your family members, your friends at work - everyone will tell you that you have to cancel your credit card once you pay it off - but in reality this is a very bad thing to do because it will drop your credit score
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