Increasing numbers of people are faced with settling credit card debt as well as facing increasing everyday household costs with what seems to be a reducing income.
There may be the same amount of money being deposited into your bank each month but with continually rising prices the money isn't going as far as it was!
In a lot of houses the financial situation is getting worse by the day, creating stress, sleepless nights and misery.
So, you're faced with having to make the money you have go further and work better so that you can manage your household.
Many people just haven't been used to working to a budget... They've spent years buying what they want at any time they choose. No money? No problem... Just put the purchases on a credit card and think about settling credit card debt later.
Can you blame people for the escalating debt situation? Each and every day offers of credit card loans were pushed onto you wherever you went - the high street, television advertising, through the mail... It was never ending...
Borrowing money and getting into debt had never been so easy. Or so dangerous...
But what so many people forgot about was that the day of reckoning would arrive and all these debts would have to be repaid...
But when you're not used to making savings ow do you learn to work to a budget?
Firstly you have to work out what the essential payments are that have to be made each month. Your mortgage or rent, your local taxes, insurances, car taxes aren't an option and have to be paid. You should also set aside some money each month so you have a financial backup in case of emergencies that may arise. Unfortunately things go wrong and repairs are needed.
Secondly, you need to ditch your credit card and don't take one out with you when you go shopping. Take a shopping list to the store and stick to it... Spend cash and you're pretty much guaranteed to spend less - handing over cash has been seen to be more difficult than handing over a credit card. Cash is psychologically real... It's been earned so we're more careful when spending it.
When you've decided what your essential expenditure is the next thing is to decide what you can do without. Even in the short term, to save money and to concentrate your finances on settling credit card debt you have to make some sacrifices.
What can you do without?
It's a long list so be prepared for some pain... Satellite tv - make do with regular tv. Gym membership - go for a walk instead. Meals out have to go - learn to cook instead. Forget non-essential clothes - no more impulse buys. No more updated electronics - make do with what you've already got! You can't have those exotic holidays - well, you probably haven't paid for last year's yet!
Can life still be worth living with all these economies? Sorry, but you're going to have to live with it! If you don't get a grip of your debt problems then you'll end up with some unpleasant people knocking at your door demanding debt payments... And that's when things will get really, really stressful and you'll have no control over what happens to you after that...
You have to take stock of where you are, sort out a weekly budget and stick to it like glue.. Any frivolous spending has to stop as that's what got you into this mess in the first place.
Settling credit card debt has to take priority over any more frivolous spending! You'll rightly be proud of yourself when you're financially healthy again..