Are you a shopaholic with uncontrolled credit card debt? Unrestrained spending habits using your card is the main cause of your credit card debt.
To erase debt you will need to learn how to control your spending, spend less and repay your credit debt.
And the best way to do this is by using a budget.
Start your plan to erase debt by preparing your monthly budget.
It is important to know what money you have coming in so that you can control what is going out - that is your spending.
Always think about whether the item you are buying is a want or a need.
Are you buying on impulse? Do you find that you see something and you must have it? If you buy on want, impulse and desire you are a shopaholic.
Stop and think, because getting into debt to have the latest gadget is ultimately hurting you.
Sleep on it and decide if you do actually need it.
If you do, then save for the item and get it later.
You must change the way you think.
Change your attitude.
Stop and think.
Set up your budget.
So that you will not feel deprived allow yourself an amount of money for entertainment and small expenses - not too much mind you! Once this amount is gone it's gone until your next allowance.
One of the common expenses on credit cards for shopaholics is the purchase of clothing.
It is so easy to run away with your spending with a credit card in hand but you must remember that this is a loan which must be repaid.
In your budget you need to allow a set amount each month for a clothing allowance, a gift allowance and other expenses that you don't necessarily spend on each month - except perhaps for shopaholics! It is important to make sure that your regular vital expenses such as food, rent, utilities, insurance and loan payments are covered in your budget.
Make sure that your income will cover these.
The minimum payment to your card debt should be included in your budget calculations.
How do you know what amount to set for your monthly clothing and gift allowance? Look at what you have spent in the last year.
You have likely used your credit card for these purchases so you should have a record unless you have thrown your statements away.
Be prepared for a shock as this figure is likely to be high.
And this is the very reason you need a budget - to make you aware of your spending.
Reduce the sum for the future and once you have reached a fair amount for your clothing and gift allowances divide them by 12.
This will give you your monthly allowance.
Pay your calculated allowance into your card debt until the debt is repaid.
If you are serious about erasing your debt you will have to consider other options for gifts rather than buying something.
Only buy clothing that you need and do not continue to use the card for spending.
Always pay at least the minimum payment on your credit card debt.
Once the debt is gone make sure you pay the balance in full each month to avoid fees and interest.
To erase debt effectively you need to change your attitude to spending, plan your strategy using a budget and become clear on what you need rather than what you want.