It’s easy to find yourself in a difficult situation and use a credit card to get you over the bump in the road.
We’ve all done it.
But what happens when you come to multiple bumps in the road, and you use a credit card to help you with each one?
You may find yourself drowning in credit card debt spread across multiple cards.
This feeling can be overwhelming, and you may not be sure where to start, or which card to pay back first.
It may be comforting to know that you’re not the only one in this situation.
If you’re ready to break free from your credit card debt, follow these tips.
Preliminary Steps
Before you start paying down the balances on your cards, make sure you have an emergency fund.
Your emergency fund can be any amount you think is appropriate, but experts suggest that it be at least one month’s worth of your take home pay.
By having this emergency fund in place, you’ll be able to cover any minor financial hiccups without resorting to using your credit cards again.
Set a goal for yourself, and continue adding to the fund until you reach that magic number.
Next, make sure to get a copy of your credit report, and check it for any errors.
Disputing any errors is the first step to creating a debt free profile for yourself.
You’ll want to take note of all your debts.
After all, what’s the point of working to pay off your balances if you don’t know what all of them are?
Finally, the last preliminary step is to stop using your credit cards. Period.
By only using cash for a while you’ll be able to keep better track of your spending and figure out where all your money is going.
