Today, Priority Plus Financial will discuss one of the most convenient (and yet, the most abused) financial systems currently used by almost all Americans. 

Ever since they were first invented back in the 1950s, the credit card system is well-favored by all because of its convenience, its safety, simplicity, and, most importantly, the ability to spend money that the user hasn’t earned yet. And with that line of thought, there is always a sure chance of abuse coming from users who have no idea how to manage credit card debt. 

Statistics show that before the coronavirus pandemic started, a huge majority of Americans were all scrambling towards the top of the credit card debt chain! As of November 2017, Americans have already overshot the staggering $1.02 trillion credit card debt recorded in May of 2008 alone. By February 2020, more US citizens are deep in credit card debt, with a whopping $98 billion added to the total debt amount.  

All in all, credit card issuers have to collect around $1.1 trillion dollars for credit card debt. 

Finding Solutions 

Priority Plus Financial understands that getting out of credit card debt can be a difficult task. But it is not entirely an impossible task. There have been a lot of success stories from people who are able to get out of bad credit card debt. Of course, the road towards that goal is not easy; it takes information, dedication, and a whole lot of discipline! 

Getting on top of credit card management need not be exhausting and problematic. All it takes is a three-pronged attack that consists of the following steps: 

Managing Spending habits 

With a credit card, it is very easy to fall into temptation. After all, spending all that money can be addicting, especially if the user experiences the power of the credit card for the first time. This is the reason why managing spending habits should be the first priority for anyone who wants to recover from credit card debt.  

If possible, don’t use credit cards at all; stick to using controlled means of payment, such as a debit card or even actual pocket money. This way, it will eliminate the possibility of overspending money again on items that one doesn’t need. With online shopping websites nowadays, getting bombarded with shopping deals using credit cards is already considered a norm, so for those who are trying their best to manage their credit card debt, then learning how to manage their credit card spending habit is a must. 

Improving Saving Habits 

Because we’ve tackled the issue of managing spending habits, Priority Plus Financial also believes in the power of improving one’s saving habits.  

Don’t spend because one has extra money. Remember that there are times when money becomes a scarcity. For those who are earning a lot of money right now, consider the future. Does one have enough money for emergencies, such as sudden lockdowns again due to the current pandemic? How about medical emergencies? Does one have a savings account to use in case of sudden hospitalization? 

Think about this: when COVID appeared in March of 2020, the economy went into a deep freeze. Suddenly, factories and offices closed down and millions of people lost their jobs, either because of getting infected by the virus or because the company decided to shut down because of the lockdowns. And if you look at the recent numbers, the number of infections seems to be on the rise again. Who knows when the next lockdown will be. 

There are some who believe that it’s too late to start saving money. That is not true at all. There are countless stories from people out there who managed to save enough money to help themselves get out of debt. It’s just a matter of willpower and discipline! 

Forming a Debt-Elimination Strategy 

The third phase of the three-pronged strategy for better credit card management is to form a good debt-elimination strategy. Think about how often one spends on credit cards. Now also think about how to get the money to pay for the credit card debts. With the right advice and strategy, getting out of credit card debt may take time, but it is no longer impossible. 

As for getting ideas on how to pay credit card debts, one can get a personal loan in order to pay off credit card debts. Make sure to get low-interest rate loans in order to not get burdened with paying not just the credit card debt itself, but the interest rates too! 

Originally published at https://priorityplusfinancial.blogspot.com on May 28, 2022.