Did you know that the average household debt is over $15,000 in credit cards alone?
So, what are the best ways to reduce debt? Here’s our list of 5 ways to get rid of the debt and to instead strive toward debt free Christian living.
1. Reduce Frivolous Spending
It’s true that you must use money to survive, but many of us have fallen into a habit of consumerism. We run to the movies for entertainment on a rainy day, we eat out because we won't make time to cook dinner, and we shop for deals at the store that are just “too good” to pass up.
Even if you use cash for your purchases, you’retaxing your financial well being. Add up – just for one week – how much you spend on your Starbucks coffee. Now imagine how you could have used that income more wisely . Even a insignificant amount of money invested over time can add up to a large sum.
2. Kill The Extra Cards
Did you know that the average number of credit cards per person is 3.5 credit cards? Keep just one card, which you don't carry with you. That card will be used for actual emergencies, to reserve a hotel room or rental car and other necessary uses. Even if your credit cards have a balance, get rid of the cards as you work on getting out from under the debt.
Don’t even consider the pre-approved or pre-selected offers you get in the mail. There are few people who need more credit cards.
3. Stop Using the Credit Card Account
We all know people who cut up credit cards and begin paying off debt but discover they can still spend using their credit card number. Most online sites can keep your credit card information saved, so it’s very easy to click “buy” without much consideration.
First things first – if you have internet accounts that do contain saved credit card information, sign into your account and delete that data. Not only will that protect you if the website servers go down, but it helps you not to make a quick and thoughtless shopping decision. When you don’t have the cash, you don’t make the purchase.
4. Set Up A Payment Plan
Whichever method you choose, set up a payment plan and stick to it.
You can decide to take out a debt consolidation loan, or work with a debt reduction company that will help you payoff debt and reduce your existing payments, or you may start your own debt reduction using the debt snowball method to payoff debt. Whichever method you decide on, choose it carefully and then stick to it.
5. Cultivate New Habits
The average credit card user has debt that is 14 years old. Habits have formed around managing debt in payments instead of payoffs.
It can be hard to change that dynamic with money . It’s important to understand that easy debt solutions don’t really exist without avoiding additional debt, working hard to reduce money owed to others and developing a change in spending habits over time.
Visit Debt Free Christian for more information including financial calculators to monitor your current financial stability.
Source for Credit Card Statistics:
http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php

