How do you get more cash in your life?
By using it.
As reported in Consumer Reports, people tend to spend less money when paying with real-life cash. Credit cards can be very easy to play around with – but swipe here and there and everywhere and the money starts adding up. Your debt starts adding up.
A careless swipe here and there, and suddenly you’re behind on your bills – no longer paying your credit card bills on time. And your credit score will suffer.
You can try using these strategies to help reduce your debt:
At the beginning of each week, give yourself an “allowance.” Go to the ATM and withdraw this set amount which you are allowed to use for groceries, clothing and restaurant meals out. You need to become your own guardian and disperse the bills to yourself. This is the money that you are allowed to spend for that week; you’re not allowed to go over that amount. You’ll find ways to make your shopping list, clothing choices and restaurant meals fit into that budget.
Use your credit card for everything else. You can continue to pay for your Netflix, gasoline, and Amazon prime deliveries through your credit card, but set a limit for yourself. You are trying to reduce your level of debt, but not eliminate it entirely. A complete lack of credit card spending will adversely impact your credit score. You want to show that you can manage credit, maintain a moderate level, and pay it off with punctuality. Smartasset reports that 30% is an ideal credit-to-debt ratio.
Mark your top priorities for splurging. Try to cut down too quickly and you’ll feel deprived, which may cause you to give up your plan entirely. So determine your top two splurges and offer them to yourself on occasion, but with less regularity than before. Go out to eat once a week, instead of every day. Get rid of your fancy gym membership, and go jogging in the park. Life will go on, and it will get even better once your credit score has improved.
At Pujol Law Group, we offer a wide variety of services to our clients, including credit repair. Has your credit score been adversely impacted by a major life event, such as a foreclosure or loan modification manner? Contact us to learn about more steps we can take together to bring you toward the credit score of your dreams. We can make this happen together.