Like many of the individuals seeking a Honolulu certified public accountant, you probably want to find a successful way out of credit card debt, and there are ways to do so that can help you achieve this goal. Digging out of this debt and lowering your credit card balances can be approached in a few simple ways.
Let’s explore these options in more detail:
Start by figuring out where you stand. You have to be honest with yourself in regard to how much debt you are in. For example, do not try to minimize it in your head to make it seem like it is not as bad as it truly is. Focus on the true amount and create a target dollar amount of which you would like to see. It’s best to write the amount of debt and the interest rate of each card to see it at face value and keep track of it easier.
While you are tracking the amount of debt and the interest rates of each credit card, you will also want to try tracking your costs. Write down all of the expenses you incur on a monthly basis. These are expenses such as rent, mortgage, utilities, insurance, car payments, credit card payments, cable and Internet bills, phone bills and gym memberships, if applicable. This will give you a better sense of how much you spend every month. The results may be jarring!
Of course you will then want to create a strategy for paying this debt off. First, set a budget for yourself. Then, using that budget, you can begin to pay off the card with the highest interest. Once you are able to pay off that card, move on to the card with the next highest interest rate.
Once you get into the habit of tracking your spending and keeping tabs on your credit amounts, you will find that saving money and spending wiser will come as second nature to you. Paying off the debt and minimizing your credit will give you the motivation you need to continue this financial practice!
Contact a Honolulu certified public accountant today to help you learn how to diminish your debt – call Michael J. Yuda to learn more!