We all have struggles. Each of us is battling with one challenge or the other. Financial challenges are almost an everyday thing. But let’s pause on that for a second. There’s still work challenges, meeting up with deadlines, family challenges, security issues, and every other mental or psychological challenge. Financial challenges sometimes stand out because it’s hard to wake up in a day and not spend money. In fact, you’re probably sitting on a debt waiting to happen. The water and light you’re using, you’re going to pay for them at the end of the month. The credit card you just swiped at the mall to get a new set of home theater, you will pay for them. You don’t necessarily have to use cash before you know you’re spending daily. 

Credit card debt is quite a unique thing most people face. It’s not a challenge you face at the point when you’re happily swiping the card. You will realise how light or how heavy the burden of debt is when it’s time to pay back, and it’s never sweet to pay debt. If you are having a constant struggle with credit card debts, there are some things you may need to look at to see how you can make some changes and achieve financial balance. Let’s get started.

What are Credit Card Debts?

Credit card debts are the amounts you owe due to spending on credit cards. When you use a credit card, you’re borrowing money from the card issuer to make purchases or withdraw cash, with the promise to pay it back. If the borrowed amount isn’t fully paid off by the due date, it starts accruing interest, adding to the total debt you owe.

Let’s put it in perspective. You go to the mall for window shopping because you were bored. You didn’t have the intention of buying anything since you don’t even have any extra cash left. But on getting there, despite the fact that you had earlier promised yourself not to buy anything, you couldn’t resist the temptation of this shiny low-grade diamond ring that is worth $300. You walked past it at first, grabbed a soda drink and you paid cash.

You were already on your way home when that thought tells you “If I perish, I perish.” You know you could probably ‘perish’ because you have student loan debts, you have a car loan you’re paying and you still have other personal loans you’re managing. But the temptation to own a shiny ring outweighed the logical reasoning of saying “No” since you know you couldn’t afford it at the time.

So, you rushed back and paid for the ring with your credit card, and you were so excited. The credit card company paid for the ring, while you will pay them back at the end of the month.

Credit card helps you pay for things even if you can’t afford them at that moment.

Why You Could Be Struggling 

There’s always where to draw the line. Just because you have access to a whole full chicken doesn’t mean you should stuff your digestive system with the whole chicken. There’s what your body can take per time. As much as water is life and your body needs to be hydrated, but if you drink too much water at a point because you were thirsty, you will feel uncomfortable. In other words, too much of everything is bad. Same is applicable to credit card use.

Credit card is not bad, but how you use it can redefine it. Just because you have a credit limit of $30,000 doesn’t mean you must use it up and pay interest through your nose, especially if you’re unable to clear the balance at the end of the month. In fact, the credit bureau expects you to use just 30% of your available credit limit. This is one of the criteria used to determine your credit score. Using a credit card means you have a job, and with your job, it is expected that you take care of your basic needs and use credit once in a while just to stay afloat of your financial situation. But reality is different, some people are living solely on payday loans and credit cards. This could cause lots of financial struggles.

Not Budgeting 

There’s hardly any conversation about personal finance that doesn’t have budgeting in it. When you don’t budget, you’re leaving things to chance. It means you will keep spending as long as there’s something in your wallet and you will only stop when it’s empty. Meanwhile, by the time you’re broke, you’re probably still a week or two weeks away from payday and you may still have many expenses to cover while you still need to survive. But when you budget, you will cut your cloth according to the available material and you will only use credit cards rarely and when you do, it won’t be for major purchases. Therefore, if you want to stop struggling with credit card debts, adopt the habit of budgeting.

Break Free

Struggling with debt is not a new thing, lots of people go through it but it depends on how you go about it. Do you know you can reduce your credit card debts by up to 80%, and interest will stop immediately? You can speak with one of our debt experts at EmpireOne Credit to know how we can assist you in getting rid of your debt. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!