The world of finance is a world that we all want to conquer but not everybody can reach the top. In most cases, people live month to month from pay check to pay check. One thing that does not go as planned will leave a person scrambling for additional funding or some other way to pay for those darn bills.
When families all over the United States where asked what bills most of their salaries go to, it came out that most of their money actually go towards paying their credit card bills. Studies also show that these same families pay only the minimum amounts every year, further burying these families into debt.
Credit cards create a false sense of security to make you think that you can spend more than you have. This can be a powerful tool if used properly but if it is not used the right way, you may be looking at your debt ballooning to uncontrollable levels.
You can set up complex payment plans. You can move around your credit to give you the best interest rates. However, these steps will not solve your problem. Some of the may even prolong it.
There is only one thing that will help you control the problem with you credit cards and that is to spend less. Spending less is the best solution because making more money will only tempt you into buying more items for you and your family.
As we get through our live we want more. It is human nature and that is why we succeed in reaching our dreams. It is because we are motivated to reach our goals. In the process we deceive ourselves to think that we can afford the things that we have.
You may soon see yourself buying things through your credit cards that you normally would not be able to afford. This may seem like it is the fastest way to reach your dreams but the truth is that would actually lead you to financial catastrophe.
When you spend more than what you have, two things will happen. First, you can see your saving dwindle to nothing as you struggle to cope with the crippling debt. The second thing that you will encounter now is the ballooning of credit to uncontrollable portions.
The only real solution to a problem like this is to exercise self control. Living within your means will give you positive cash flow and possibly allow you to pay off your bills on time. If you play your cards right, you may even see your savings increase.
We can get into a better situation but you need to exercise caution and stop spending your money so foolishly. You can get ahead and create a better future for yourself but you need to take care of your debt and finances first. The best way to do that is to know who you are and what you can afford. More importantly, live within your means.
Tags: money saving tips, paycheck to paycheck, start saving