Using Credit Cards to Pay Off Debt?

Half the Income But All the Bills

A TV commercial for a debt consolidation company aired recently where one woman told us that her work hours got cut in half, but she cannot pay half her bills. If your income were to be cut in half, they wanted you to go to them to consolidate your debts into a lower payment. When emergencies arise, emergency cash loans do not need to push you further into debt if you are not paying your bills on credit. Paying bills on credit will just get you further into debt. Variable expenses, such as food and entertainment, can be drastically reduced, so that you can pay off your debts without using credit cards.

Reduce Expenses

To pay your bills without credit cards, the first thing you need to look at is how much money you are spending every month. Because by being honest with this, you can see where you need to reduce your expenses! Don’t forget about your entertainment and restaurant costs. Take a look at how much money you are over spending as well. A large house, fancy car, and all the amenities may cost too much for your current income. If so, you need to make some hard choices about what to cut and what to keep, so that your budget is balanced. Many people lost their homes in the foreclosure fiasco because they could not afford the high mortgage payment. If this is describing you, you need to sell your house. A $ 200 per month car payment may be more realistic at this time, so sell off your more expensive car.
Take a look at your housing, transportation and food costs to see where you can realistically cut down your expenses. After evaluating your expenses and where you can reduce, create a budget and implement it. Lower your bills by taking the necessary steps.

Debt Repayment Plan

With the massive credit card hikes that have been charged to many people lately, it is imperative that you pay off your credit card debt as soon as possible. Losing more money in the long term is common with a long term credit card balance. When you do create your budget, it would be wise to also create a plan to pay off all of your debts. Create a debt repayment plan as you are cutting up your cards. You do not need credit cards, in spite of what other people tell you. Sensible budgets allow you to live within your means, without credit cards. What if you have an emergency that a credit card could take care of. That is why you need to set up a savings account with at least eight months' worth of income in it. An emergency cash loan may help you get through your emergency until you have more money.

Increase Your Income

No budget worth its salt is complete without a plan to increase your monthly income. Taking a large cut in pay can wreak havoc for many people. How will you cope. You need to find a marketable skill that you can do in order to survive the recession. What do you do so well that you can earn money from it. Babysitting, party planning, or even organizing can all contribute to your income, even during a recession. Online writing can become a lucrative pursuit if you can explain difficult concepts. Look at your hobbies and what you are consistently work on or thinking about. After working on setting up a part time income, you may eventually find something that will be a full time income.

Smooth Sailing

After creating and implementing your sensible budget, you will wonder how you ever lived with credit card debt in the first place! A budget will be worth nothing if you do not make the effort to implement even the small changes. Unless you must take out emergency cash loans, a smart budget can make your life easier!