Numerous reports show that household debt has reached record levels in Canada. Caused by a number of debt instruments, credit card balances are part of this equation. Often credit card debt is something people push aside, assuming it’ll work itself out – eventually. But this avoidance soon impacts the rest of their lives. For example, if your average monthly credit card balance is $2,500 and you make only minimum payments, your card won’t be paid off for at least 30 years.
Are you ready to take control of your money? Putting the credit card away – especially for those small everyday purchases which really add up over the month – can help everyone avoid overspending. Instead, shopping with an Interac debit card is like using cash, except far more secure since the money is exchanged electronically between your bank and the merchant in real-time. This helps to keep track of your spending.
Here are a few additional tips to conquer credit card debt:
• Freeze your credit card – literally. Fill a bowl with water, drop your credit card in and stick it in the freezer. Give your credit card a break and focus on spending only the money you have.
• Track your purchases. Understanding where you’re spending your money is just as important as knowing the amount. And, if you use a debit card, your purchases appear instantly on your personal banking account records, making it easy to monitor your account balance to see exactly how much money you have available.
• Be a smart grocery shopper. Make a list of the foods you need based on the recipes you plan to cook, so that you are less likely to pick up extra items while you’re in the store.
• Challenge a family member or friend to take the credit-free challenge with you. Many successful habit-breaking programs suggest working with a buddy.
More information is available at www.21dayscreditfree.ca.