How To Overcome Over-Using Your Credit

One of the biggest things that people forget when they’re in debt is that it takes time to get there, so getting out of it will be equally long-running, if not more. When people deal with a chaotic use of credit, they eventually find themselves sinking in debt for years.

Hearing the word “debt,” instigates fear among people, especially when there’s a deadline they need to reach. For this reason, some people put their debt aside and only work on it when the deadline gets closer. This approach may work for some people, but for the majority, this is hard to overcome.

Thankfully, there are steps to help keep credit card usage at bay and to avoid out-of-control credit card debt. Here’s a rundown of debt-relief strategies that can help control credit card usage.

Tip #1: Stop Relying on Credit Cards for Expenses

According to Statistics Canada, the average Canadian owes over CAD23,000 of non-mortgage debt. This means that even senior citizens are taking in debt as they journey through retirement, owing to an average of CAD16,000 of non-mortgage debt. But why does this happen?

The real reason behind out-of-control credit debit is that people have grown used to carrying debt and making minimum payments using their credit card, forgetting that it could eventually add up to bigger values in the future. In some cases, people forget that their credit is out-of-control when they finally reach their credit limit.

Tip #2: Avoid Using Credit Cards, Even For Small Purchases

One of the best ways to keep credit in control, especially for those at risk of financial problems, is to put the credit cards away — go cold turkey and stop using them for a few months.

Ideally, one should go without using their cards for at least three months to help mask their financial situation and curb their lifestyle. It’s easier said than done, but doing this self-test will give debtors an honest perspective of their relationship with money.

Tip #3: Start Tracking Money and Expenditures

As mentioned earlier, getting an overview of a financial situation can be incredibly difficult and sometimes could be an emotional experience. However, it’s completely necessary, especially when one may be swimming in debt.

A great way to have control debt and expenses is by tracking the movement of their money. This includes identifying annual total costs for irregular, seasonal, and even one-time expenses. Expenses that could add up to debt may include car repairs, maintenance, vacations, insurance premiums, necessities, and more.

Having an overview of monthly expenditures will give the person an idea of which areas they can cut down on and which expenses or debt categories need more attention and prompt action. This way, setting aside monthly income to pay for your liabilities will be much easier, instead of dealing with financial burden at the last minute.

Tip #4: Consider Calling DebtHelpers.ca

Depending on the amount of debt owed, a debt consultant like DebtHelpers.ca be beneficial. People who are experiencing financial struggles can use DebtHelpers.ca to find relief from personal debt. To start out, we put a stop to creditor calls and demand letters immediately, alleviating stress. We will then negotiate a settlement with your creditors and stop interest payments – potentially saving you tens of thousands of dollars.

The Bottom Line: The Key To Controlling Debt Is Knowing Where The Money Is Going

A financial health assessment can be difficult, but it’s necessary to help a person get out and stay out of credit card debt. Fortunately, there are ways to manage out-of-control credit card debt. By following these tips and seeking assistance from debt helpers, people who struggle with deep debts will be much closer to being debt-free.

Where Can I Find Debt Consultants in Canada?

Dealing with finances can be tricky and emotionally draining, but it’s important to take the right steps to get you closer to financial freedom.

DebtHelpers.ca provide customized debt solutions for Canadians. We offer a range of consulting services and solutions designed to help you reach your financial goals and become debt-free. Learn more about our services today!