When it comes to getting yourself into debt and finding yourself with financial problems yet not seeing the end of your financial woes anywhere in sight, this can be a very frustrating combination.
Rather than taking the proper steps to move towards being more in control of your wallet, you seem to be spinning your wheels aimlessly not sure what you are doing wrong. This can be confusing when you aren’t sure what mistakes you are making and how to make a change.
The first step is being able to identify what you are doing wrong, then you can go in and dissect how to change it. Here are some of the most common mistakes that are holding you back from paying off your debts.
Making The Minimum Payment Due
Making the minimum payment due rather than paying as much as you can is a common mistake which will stunt your progress in paying off your credit card bills. You always want to make sure that you are paying more than the minimum if you can afford it.
Try using a tool which will tell you what you have to pay each month in order to pay off your debt within the amount of time that you would like to see them paid off. This way you can try to stick to this goal and see your progress move forward rather than stay at a standstill.
Continuing To Use Your Credit Card
If you are paying off your credit cards each month but then, in turn, use them right away again for more purchases, you might as well just be stuck in the mud spinning your wheels. If you take action towards paying your cards, you have to commit to not using them anymore until they are paid off otherwise you are remaining trapped in the cycle.
If you have to, put your cards in a drawer, freeze them, or bury them. Do whatever it takes to fight the temptation to spend. You will find yourself out of debt much faster if you stop spending altogether when attempting to pay your debt.
Not Checking Your Credit Score
It is important to keep a close eye on your credit score so that you know what is going on. If you don’t check it regularly you run the risk of something slipping under your radar like a delinquent payment or something that has gone into collections.
By regularly checking your score you can stay in touch with anything that needs to be taken care of immediately rather than letting it go by unnoticed and hurting your score. You can join a free website like Credit Karma and ensure that you never miss an important factor on your report again.