Tackling Debt in 2018
Are you familiar with the saying, “Christmas is the season when you buy this year’s gifts with next year’s money.”? It’s an unfortunate truth for many whose credit card bills are coming due right now.
If your bills are stacking up, here’s what you do! Face the facts… take responsibility… and pay them off.
How? Well, I advise you to prioritize them and systematically tackle them so that you can manage your income in better ways this year.
Discipline yourself not to use any credit cards right now.
Know the due date of your bills. It should appear at the top of your statement, or if you’ve created an online account, login to verify your next payment due date. You can schedule a payment for the future or make an immediate payment to avoid any late penalties. I recommend paying before it’s due when possible.
Also, make a list of payment due dates and set a reminder in your phone so you won’t forget to pay your bill each month.
Apply all extra income, like raises, bonuses, gifts, and tax returns to the highest-interest card first. The sooner you pay off the balance, the better.
If you already pay off your balance every month then you don’t have a problem. If not, then pay what you can as far ahead of the due date as possible.
Even installments throughout the month can help. Your interest charge is usually calculated on the average daily balance – which is lowered when you pay ahead. Plus, early payments can improve your credit score.
If you’re burdened with debt, then you understand why the Bible says “The borrower is slave of the lender.” Don’t give up hope. You can do this with God’s help – and some sacrifices on your part.
In fact, now is a great time to start a budget. And…. to save ahead for next Christmas!
If you need help getting out of overwhelming credit card debt, I want you to get in touch with our partners at Christian Credit Counselors. You can learn more by calling the Crown Help Line at 800-722-1976 or by visiting crown.org/ccc.