It’s official, our friendly groundhog saw his shadow on Monday and predicted that we are in for six more weeks of winter. Ever since Bill Murray had the worst day of his life over and over in the 1993 movie Groundhog Day, this holiday has also been synonymous with examining the bad habits and mistakes that we can’t seem to shake. You make your New Year’s resolutions January 1 and evaluate why you may not be meeting these goals on February 2.
One of the most common resolutions is to reduce credit card debt. I would also guess that this is one of the most common financial mistakes that people tend to make over and over again. Breaking the credit card debt cycle is difficult to do. Probably the number one most important step you can take is to stop using your credit cards while you are focused on paying them off. Either lock your cards in a drawer at home or freeze them in a block of ice, but do something to keep yourself from adding new charges to your accounts.
Your next step should be to create a plan to pay as much as possible to your creditors each month. Many experts recommend that you pay all your minimum payments and then put the remaining amount toward the credit card debt with the highest balance and the highest APR. When that account is paid off, you move on to the next highest balance/APR card. In most cases, this is the fastest way to reduce your debts.
Celebrate Groundhog Day this week! We at https://www.shorttermsignatureloans.com are working hard to find a way to help you break the cycle and gain control over your finances in 2015! Our team welcomes feedback and looks forward to ideas on articles for saving money and reducing debts this year. Take a few minutes to examine your financial mistakes and create a plan to stop repeating them!