We are two weeks into 2019, and the Xmas bills may be just starting to arrive. Hopefully, the Christmas season was not one where control was lost and more money spent than anticipated.
Life is expensive, especially during the festive season. We want to be generous and be seen as giving, but that is no excuse for using credit cards to support your lifestyle. Credit card debt is not a fact of life or should not be a fact of life. We have the ability to save for our next purchase or we have the ability to put off instant gratification if we use self-discipline. This may come as a shock but we can save up in advance for a vacation or new kitchen appliances.
A survey done in 2016 in the US found that Americans cite credit card debt more often than any other form of debt. Of those respondents that have debt:
- 62 percent have credit card payments
- 32 percent have car loans
- 29 percent have home loans
- 19 percent have medical bills
- 19 percent have student loans
- 13 percent have personal loans
According to Nerdwallet, the average household that’s carrying credit card debt has a balance of $15,482. Households with any kind of debt owe $134,058 (including mortgages), on average.
Nothing can ruin your finances quite like high-interest credit card debt compounding every month. Credit card debt comes with a cost. The average household with revolving credit card debt pays $904 in interest annually.
Stop everything and assess your income and expenses. Cut discretionary spending, put any savings plans on hold, and throw every cent towards your highest interest debt until it’s gone, you only have yourself to thank when you have taken control. Make this one of your late New Year's resolutions.
No comments:
Post a Comment