One of the most important strategies in consolidating and reducing your debt is to keep your debt from growing. One of the fastest ways to increase your debt is through credit card interest. Credit card companies make money when their clients don’t pay off the balance. While credit cards can be very convenient, they are very expensive as a line of credit. Some people advocate cutting up their credit cards in order to get debt under control. I prefer a more moderate approach, but if you really think you won’t be able to say no, cutting up the cards might be what you need to help control your spending.
If you keep your credit cards, try to think of them like a checking account instead of something you borrow against. Most people don’t have a very hard time not writing checks for money that they don’t have. Don’t use your credit cards to go into debt. Keep track of them just like you would your checkbook and only spend money if you know you are going to be able to pay off the balance at the end of the month.
By getting your credit card spending under control you’ll be in a good position to consolidate your debt to areas that charge lower interest. This will help you work your way out of debt as you apply other good financial strategies to your spending habits.
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