Today, I have a guest post featured on Tub of Cash. Below is a snippet, but please click on over to read the whole post.
I have encountered many people who believe that credit cards are evil. Even when I argue the benefits of credit cards, such as online protection online, extended warranties, and cash back rewards, I can never convince them. So now, I just stay quiet and nod. That’s because I’ve found that a majority of people do not know how to utilize credit cards correctly. According to the latest figures, the average millennial has more than $5,800 in debt. Inevitably, the conversation swings towards how much debt the person currently carries and whether I have a strategy to help them get out. So, I put together eleven steps to help people get out of credit card debt.
1. Make the decision to stop going into debt.
It may sound obvious, but this is, by far, the hardest step. Deciding that you will no longer use credit cards to live beyond your means is difficult, especially when you face peer pressure to go out and have fun with your friends. While it may be difficult in the short-term, I can assure in the long-term, you will be much better off and grateful for making this decision.
2. Figure out exactly how much credit card debt you have.
When I hear, “I have around $2,000 in credit card debt”, I always ask for the exact amount. That’s because most times, people don’t actually know the true figure. Instead, they just estimate. In my experience, the estimates are usually way too low. Once you figure out your exact debt amount, you can determine your target number to pay down each month. Make sure in your debt figure that you include your interest rate on every card that you owe a balance on.
This information can also be easily retrieved by utilizing Personal Capital. This service aggregates all of your accounts to show your outstanding balance, credit card limit, as well as your interest rate.