Are you one of the millions of Americans plagued with credit card debt? At the end of 2008, Americans’ credit card balances totaled upwards of $970 billion, with an average debt per household of $8,329. Fox Business profiled seven individuals who learned from their own credit disasters and transformed their plastic practices.
You can learn a lot from people like Glenn, who owed $250,000 because of skyrocketing interest rates and frequent late payments, or Marcia, who was always about $7,000 – $10,000 behind because she made a habit of paying only the minimum payment. Here are a few other highlights:
- Beef up on your personal finance knowledge – This is what Econ4U is here for! Check out Money Matters for detailed answers to some of your finance questions or use the Glossary to learn about some of those terms you keep hearing, like debt to income ratios. Or take a quiz to see how much you already know!
-Spend virtually – Make a budget and stick to it. Knowing where your finances will stand at the end of the month, before it even begins is a great way to curb impulse spending. Forcing yourself to shop online can help you buy only what you need – and what you’ve already budgeted for.
- Admit you have a problem – If you are addicted to using plastic, admitting it is the first step to recovery. Programs like Debtors Anonymous can help.
-Find the right lending option – Finding the lending option that works best for you is ultimately the most important thing we can learn from these individuals’ stories. You can read about different ways to borrow and manage credit here.
Take control of your finances today before they spiral further out of control. Educating yourself and committing to addressing your credit card debt now is a decision you will be proud of later.
