The year has barely started, and you are already in debt. It could be a carry-over from last year’s overdue credit card statements you forgot to pay on time, or it could be because you had a little too much fun shopping during the holidays. For now, it does not matter how you got the debt. All that matters is what you do with it.
Pay as Soon as You Can
There are several ways to clear outstanding debt. You may use cash to pay for an overdue loan or consolidate all your debt into one. You may also go for cash loans in Salt Lake City. Whatever method you choose, if you are taking out a loan to pay an outstanding debt, be aware of the new interest rates and deadlines.
You paid a loan, so you are clear on that one, but your new debt will gain interest if you forget to pay them on time. Let this be your first loan for the year and one that you pay without problems.
Survive the Loan-Pay-Loan Again Cycle
It is important to pay as much as you can on an existing loan so you can get out of the borrowing cycle. If you have debt that eats up your entire paycheck, you will need to take out another loan to survive until your next paycheck. When that next paycheck comes, it will go to payments, and the cycle continues.
You are earning money, but you are living in debt. That is not a good way to build your credit. It is not a good way to live at all. This New Year, cut back on unnecessary expenses to free up some funds that you can use to repay your debt. After debts have been cleared, you can spend your paycheck however you want, as long as it is within budget.
List Down Your Expenses
It is easy to forget your financial limitations when you pay using plastic. You do not realize how much you are spending. You also do not realize that before you have rightfully earned your salary, you have already spent it. Then, when the credit card bill comes, you are surprised by all the purchases you have forgotten about. They come to make your life difficult, a far cry from how the purchase made you feel good temporarily.
There is nothing wrong with a little retail therapy, but if you can pay in cash, do so. This helps you be more aware of your spending situation, and it is money you actually have. Once your cash runs out, that is a good stopping point. Before you go to bed, list everything you bought that day and reflect on how much you spent. Do this every day to feel the weight of your spending habit.
Who would not want to save money? It does not have to be wishful thinking. Pay all your debt and use cash rather than resorting to more debt. Make saving your new hobby instead of spending.