In this modern society, people have succumbed to the lure of commercialism and resorted to a complicated and rather expensive way of living. People these days quite easily get bored and tend to entertain themselves through shopping sprees, movie night-outs, luxurious vacations, etc.

Taking advantage of this increased spending habit of people, financial institutions have come up with ways and means for people to easily access their money and spend it. They have enabled people to issue check payments; made it easy to encash checks and exchange currencies; made automated teller machines (ATMs) available almost everywhere; and made credit payments possible with the use of credit cards.

For the shopaholics out there, the invention of credit cards seems like a major turning point in history. Imagine getting that nice, velvet dress, gold bracelet and perfect shoes right that instant with a single swipe. Instant gratification has not only become acceptable to society but in fact, common practice. Gone is the value of frugality, which now seem to be obsolete and a thing of the past.

Although credit cards do make things convenient as they eliminate the need for people to bring a considerable amount of cash all the time, to personally make payment of monthly bills and to borrow cash from a friend in difficult times, they can get you into a lot of trouble when not used wisely. If you don’t pay off your credit card balance before it is due, the high interest rates of many credit cards can pile up your debt rapidly. Before you know it, you could be buried in debt and in deep financial trouble.

Consolidating credit card debt with the help of a debt consolidator is one possible way out of this financial mess. You can take out a single loan, with lower interest in order to settle your credit card obligations, which usually comes with higher interest rates.

Another option is planning a gradual repayment scheme which is preferable, but not always possible. How do you go about paying off your debt without taking out a loan? Simplify your lifestyle. Learn to budget wisely.

To get your debt under control, your goal is to increase your savings. Accumulate enough savings every month which you can use to gradually pay off your debt within a target period of time.

So as soon as your monthly income comes in, set aside money for savings. In other words, pay yourself first. Start with a comfortable percentage such as 5% of your monthly income. You can increase the percentage later when you have adjusted to an even simpler lifestyle. Initially, these savings are meant to pay off your credit card debt and to accumulate some emergency funds for unexpected events like unemployment, illness, etc. Eventually, you can also set aside savings for your retirement plans as well.

Next step is to review all your expenses. How much do you usually spend for needs like grocery, gas, bills, mortgage, etc.? How much do you spend for vacations, shopping, relaxation, and others? Distinguish the needs from the wants. Plan an acceptable level of expenditure for each need and minimize expenditures on unnecessary items.

Finally, stick to your budget. Downgrade your lifestyle and strive to live more simply.

Planning is futile if not translated into action. You have the power to save yourself from the financial pit you have put yourself in. Start doing something about it now.

Author Bio: Troy Charles G. Burton is a financial analyst who enjoys writing about debt consolidator and consolidating credit card debt as well as other financial services.

Category: Finances
Keywords: credit cards,credit card,credit card debt,monthly income,interest rates