Let’s face it, we all dread that time of the month, when your credit card bill comes in and the shock of how much you’ve overspent this month. You have blown your budget and are now dipping into savings to pay off the balance, or you’re not paying the entire balance off and are now accumulating interest.
It’s a revolving cycle and a very tough one to break. So how do you get yourself out of credit card debt and back on budget? According to a report released in 2015, nearly half of all Canadian credit card holders (46 per cent) are carrying credit card debt. So what does this mean? It means you’re not alone.
Credit cards are used daily and sometimes in preference to cash or debit. Because they are such a popular payment method for Canadians; if you don’t keep track of your spending, these unchecked purchase habits can result in getting stuck in the continuous monthly debt cycles mentioned above and down the road impact your long-term financial goals.
People also describe this feeling as stuck on a hamster wheel that keeps spinning and you never know when it’s going to stop. Especially when it comes to your money, you never know when the unexpected could happen and more money has to out, causing the cycle to continue. Every time you think you’ve paid off a good chunk of your debt, something else comes along and then you’re right back on the wheel and what feels like the never-ending cycle.
Besides winning the lottery, how do you get out of this cycle and off the hamster wheel? Everyone has their own person finance tips and ways they like to handle their money, and we’ve even heard of people putting their credit cards in the freezer! Unless you have your money tree in full bloom growing, this is something that will take hard work and a lot of money management. Always focus on paying off as much as your credit card balance as possible and by slowly chipping away at it (with limited spending and using it of course), you will start to see that number go down. It’s all about being diligent and staying on top of your finances!
No one likes to financial stress or surprises when the bills come in the mail, so it’s up to you to gain control of your spending. You will be happy you know what your statement will say at the end of the month.
Do you have any tips when it comes to your credit card bills? Let us know in the comment section below.