Take interest in your credit card

Have you ever asked yourself, “Where does my money go?” or “I thought this card would have been paid off by now.” Let’s take a look at the interest you are paying to cover credit card debt. This could easily be the most important first step to financial freedom.

Credit card companies are in the business of making BIG money, YOUR money, and the only way to achieve any degree of financial independence is through financial discipline.

Credit card interest rates can be 20% or more! “But I only have $5,000 of credit card debt.” $5,000 at 20% is roughly $1,000 of interest you are paying, just in the first year. Whether you are on a fixed budget or not, you don’t want to give a company $100 per month and not get anything in return.

Credit cards can be our friends or our enemies. Credit cards make it so easy to buy items like gas, groceries, and clothes at stores or online. Most department stores and retail companies offer credit cards and payment options. But, even though you may not be physically handing the card to a cashier, just remember you still have to pay for that purchase.

Consider using only one credit card and destroying the rest. One credit card statement will help identify where your money is going and then you must ask yourself one simple question, “Did I REALLY need to make these purchases or was it a simple case of impulse buying?”

Develop a payoff plan. Take a sheet of paper and list all your cards, how much you owe on each, and the cards’ corresponding interest rates. Depending on your personal budget, it may behoove you to focus on the card with the smallest balance and then destroy that card or attack the card that is charging the highest interest rate. The important thing is to establish a behavior of paying off the entire debt as quickly as possible.

Step one of money savings tips - Significantly reduce, or better yet, get rid of Credit Card Debt!!!