I am going to suggest you do something you may not be willing to do. You may be hesitant, scared or completely shocked. Today, right now, I’m proposing you cut up your credit cards, all of them. From today forward, use only cash (or a debit card if you insist on using plastic).Will this be a challenge for you? Will you have the courage to rid yourself of the debt trap credit cards leave you in?If you didn’t already know, credit card debt is a major problem among families. It has been said, there is NO positive side to credit card use. According to the American Bankers Association (ABA) the average family carries $12,000 in credit card debt.The main reason why credit cards become a dangerous weapon is because they allow you to spend beyond your means.Often times, there is too much month at the end of the money. You might then consider using your plastic to make ends meet. Likely, you intend to pay off the balance but that doesn’t happen. It then turns into a vicious cycle. Thousands of dollars later, your credit card balances have sky rocketed, monthly minimum payments have jumped and the interest you pay is staggering (60% of Americans do not pay off their credit cards every month so don’t feel alone).Credit cards ARE NOT the safety net you may think they are. It is a multi-billion dollar industry, you will not win their game. Cut up the plastic and adopt smarter choices for your family.
After you commit to cutting up your credit cards (all of them) and profess you will not use consumer credit again, you can begin losing all anxiety about money. If you are ready to follow the right priorities read on.
Here are some easy things to incorporate into your families lives. It is literally a sink or swim option. You will drown if you don’t begin to manage your money appropriately.If You Don’t Manage Your Money, Your Money Will Manage You…Track Your Spending. For the next 30 days, track all your spending. I think this simple step opens your eyes to how much money is wasted. Keep a small notebook handy and write down how much and on what (it’s that simple). By doing this, you will find ways to plug the holes where money is leaking from your lives.Set up a new budget every month. You wouldn’t build a house without a blue print. You wouldn’t drive across country without a map (or GPS). Would you? Why would you spend your hard earn money without a budget?Build An Emergency Fund. Because life happens, you need a stash of money to deal with it. Like the unexpected pregnancy, the need for a new transmission, a new washer because the old one just died and on and on. What you need is an emergency fund. Start building an emergency fund to pay for those unforeseen expenses.The cycle of dependence on credit cards has to be broken. A well planned budget for anticipated expenses and an emergency fund for the unexpected can end your dependence on plastic. Filling up those leaky holes by tracking your spending will result in more money for the month.
Making a plan and sticking to it will make all the difference for your entire family. Enjoy the new found peace of mind too!
