Is your credit card debt getting out of hand? Many consumers fall into the trap of using credit cards excessively, sending them into an unhealthy cycle of debt. You’re Approved is a credit counseling service in Melville, NY, and they’ve helped numerous people break free of the debt cycle. Below, their qualified staff outlines what you should do if your credit debt is difficult to manage.
3 Steps for Handling Credit Card Debt
1. Cut Spending
Your first step is to plan a budget and see where you can cut expenses. Start by looking at your bank statements from the last three months. Where did your money go? Did you get takeout even though you had food at home? Do you have automated or recurring expenses for services you no longer use? Smaller daily expenditures, such as multiple trips to the grocery store each week, add up quickly. This will give you an idea of what you’ve been spending, as well as what you can put toward paying down the debt.
2. Design a Plan of Attack
Regardless of the amount of debt you’re facing, it can be liberating to list it out on a spreadsheet and figure out a plan of attack. Start with the smallest amount of debt and pay that off first. Put all extra money toward paying off the loan or credit card at the top of the list, and pay the minimums on all other loans. Alternatively, if you have credit cards or loans with higher APRs, list those first so you’re not paying banks and credit card companies any more than you have to.
3. Tell Someone About Your Debt
You may feel some shame about your credit card debt. However, know you’re not alone. In fact, credit card debt has increased by 9% since 2015. Speak with a close family member or friend to feel better about your scenario. Additionally, contact a debt counseling service to figure out a plan to pay down your debt and liberate yourself financially.
If you’re concerned about mounting credit card debt, know that you’re not alone. Reach out to a professional credit counselor to determine a plan of action. The professionals at You’re Approved are on hand to assist you. From counseling for personal credit to business credit profiles, they help customers from all walks of life in Suffolk County. Call them today at (631) 683-3303.