Credit card debt is unquestionably one of the biggest problems of modern day teens and adults alike. It seems to grow without check, like a balloon which is constantly being filled with air. In a way it is being filled with air. Watch out for the hole in the balloon.
Credit card debt starts with the uneducated teen that opens a bank account and starts using the credit card. It is a novelty. He starts spending like crazy. He uses the card, and his wallet never grows thinner. Or so it seems.
Your wallet is getting thinner—figuratively. Your bank account shrinks and shrinks until you find yourself in the red. Because of unmonitored bank statements and lack of discipline, your account goes lower and lower and lower. Now you’re way in debt. But because of habits, you continue spending. That is where you need to stop.
The key to avoid credit card debt is education. An educated teen (or adult) who opens up a credit account will not get into debt (or if so only slightly and for a short time). Monitoring the bank statements and your amount is crucial.
How to fix your credit card debt:
- Stop spending randomly. Leave your credit card home when you go shopping. Ask your parents for help. Stop spending.
- Cut down on unnecessary expenses (i.e. extra clothes, extravagant knick-knacks, etc. You’d be surprised how much you can cut down.)
- Put aside a decent portion of your paycheck (or allowance). Make it at least 20%, though preferably more. Pay back little by little.
If you use this system, you will pay off your debt. It does not happen in a day. Rome was not built in a day. It took years. Your debt might take years or it might take months. It depends on your determination, willingness and effort. You and only you decide whether or not you will get out of debt.