Get Out of Debt (and Stay Out) Are you carrying a large amount of debt? On average, American households have about $15,000 of to pay off your outstanding credit card debt, according to NerdWallet. If you’re struggling balances, or if tired of high interest costs, the ___________ Society of CPAs explains the you’re best ways to get out from under those bills. Step 1: Start Spending Less It sounds so easy, but we all know that it can be pretty tempting to whip out the credit card and go completely off budget. To solve that problem, leave your credit cards at home and resolve to rely on cash throughout the day. In addition, delete your credit card information from the online merchants you visit most frequently so that a little harder to make an impulse purchase and it’s you have time to reconsider. When about to splurge, ask yourself if your purchase is you’re worth the interest pay if you charge it and pay your balance off immediately. costs you’ll don’t You may find easier to bypass busting your budget. it’s Step 2: Budget, Budget, Budget to determine how much spending is too much unless you know what you can afford to It’s tough spend each month. When you create a budget, add up your monthly income, then subtract your recurring expenses, such as rent or mortgage, food, commuting costs and, of course, any regular debt payments. Remember that if you overspend what is left, it will just increase your outstanding debt balances.
Get Out of Debt (and Stay Out) Are you carrying a large amount of debt? On average, American households have about $15,000 of credit card debt, according to NerdWallet. If you’re struggling to pay off your outstanding balances, or if you’re tired of high interest costs, the ___________ Society of CPAs explains the best ways to get out from under those bills. Step 1: Start Spending Less It sounds so easy, but we all know that it can be pretty tempting to whip out the credit card and go completely off budget. To solve that problem, leave your credit cards at home and resolve to rely on cash throughout the day. In addition, delete your credit card information from the online merchants you visit most frequently so that it’s a little harder to make an impulse purchase and you have time to reconsider. When you’re about to splurge, ask yourself if your purchase is worth the interest costs you’ll pay if you charge it and don’t pay your balance off immediately. You may find it’s easier to bypass busting your budget. Step 2: Budget, Budget, Budget It’s tough to determine how much spending is too much unless you know what you can afford to spend each month. When you create a budget, add up your monthly income, then subtract your recurring expenses, such as rent or mortgage, food, commuting costs and, of course, any regular debt payments. Remember that if you overspend what is left, it will just increase your outstanding debt balances.