Americans are still having a problem with debt as evidenced by the fact that credit card debt is sharply higher vs. last year. In fact it was up 5.9% over July 2011. The Federal Reserve has reported that the average American household is now burdened with $15,587 and credit card debt alone and of course, just about everyone is faced with serious financial issues during this period of bad financial news.
If you're having debt problems
If you are experiencing problems with debt, there are things you can do to ensure yourself of a better financial future. Here are six things you could do to brighten your financial picture regardless of the state of the economy. But do understand that doing a better job of managing debt requires you to change how you think about spending your money and must be open to utilizing the professional and educational resources that are available.
Be ready to make sacrifices
The first and probably most essential step if you're stressed by credit card debt is to determine where you can make spending cuts. You will have to look at what luxuries you could give up and your decision-making process, especially if you feel you've been making bad decisions.
Learn how to do things differently
You've probably heard the old saying, "if you keep doing what you're doing, you'll keep getting what you're getting". You will need to learn how to change your habits to get out of debt, which means changing the way you approach your finances. You must stop overspending as you did in the past
Take advantage of the financial tools now available
There are a number of great money management tools available either as apps you can use on your smart phone or tablet or as software for your computer. As an example of these the very popular Mint.com could help you develop a budget, keep track of your spending, monitor your investments and will even send you an alert if it finds a financial product that's better or cheaper than one you're currently using. Websites such as InCharge.org offer a myriad of educational materials and interactive tools including home budgeting calculators and even financial games where you can have fun while you're learning to make better decisions.
Always pay on time
You've undoubtedly heard many times how important it is to pay on time but this cannot be over stated. It is definitely in the top five things you can do to have a better financial future. If you're constantly paying over-limit charges and late fees, you're spending money you shouldn't be spending.
Do it now
How many times have you decided to do something about your finances but then just kept putting it off and did nothing? You need to create a budget and a spending plan today and start following them. Otherwise, you'll just continue spending too much and never get your debt under control.
Get help
There are non-profit credit counseling agencies in almost every city and town. Don't be afraid to go to one for help. These agencies are staffed by counselors who have helped hundreds of people get control of their finances and get out of debt. Most either charge nothing or have very low fees. Your counselor will review all of your earnings and your debts, help you create a budget and, if necessary, even a plan to pay back your creditors and become debt free.
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