Debt Management Solution -
Credit Cards Are Not the Answer

If you are actively trying to find a solution to your debt, then you need some management strategies to handle your credit cards.

How do you know you are falling into debt?

If you use credit cards, debt can creep up on you quickly. You know you are in trouble and in need of a debt management solution when you buy more with your credit card than you can afford to pay. As soon as you start paying part of your monthly credit card bill instead of the full amount, you end up accumulating an on-going balance. Interest is charged and you fall further and further into debt.

Finding a debt management solution

If your gut tells you that it's time to stop spending, start actively finding a solution to managing your debt.

Do not let yourself fall into the denial trap. It's all too easy to dismiss your debt by normalising it or saying to yourself, its okay, everyone is in debt. If you take this attitude your spending could escalate and you could end up in a sticky situation. When you apply for a second or third credit card to pay off the first, you know you need to start finding a solution to your debt management quickly.

Even if you are a slave to your credit card, you can still take positive steps to finding a debt management solution.

• Firstly, shop around for the best rates on balance transfers. You could reduce your monthly outgoings by consolidating your existing credit card debt.
• Talk to an independent financial adviser who can advise on the best debt management solution for your particular situation.
• Recognise that you could be over spending when you use your credit card. One way of curtailing the risk of over spending is to draw out the cash you need to live on for the week. Leave the credit card in a drawer, under lock and key!

Prioritise

Finding the right debt management solution involves planning. List your short-term and long-term goals in what you want to achieve with your finances. You will need to calculate how to juggle your income, your outgoings and your wants and needs. Start by paying off the credit cards that cost you the most in interest rates.

Stick to your guns

Be disciplined with your budget and paying off borrowed money. This will mean living within your means; try not to spend money before you've earned it.

For advice on which debt management solution is right for you visit MRA Debt Help at www.mradebthelp.co.uk or call 0800 612 92 23.

For independent financial advice visit our sister company, Mike Robertson Associates at www.mraltd.com. You can email an independent financial adviser for professional help or call 0870 803 1995.