Does it seem like you’re getting no where with your massive amount of debt? You pay your bills on time and even pay more than the minimum, but each month the totals look the same or slightly higher. It all boils down to one simple problem – you’re still using credit each month. When you continue to use credit, while trying to get out of debt, you’re left running in place. Unfortunately, some people find it hard to break the cycle and that’s where financial streaks comes in handy. The two following methods can help you stop using credit and finally pay off your debt.
The No “Junk” Streak
Everyone does it. You see a fantastic deal on something and think you’ve just got to have it. Since you don’t have the money readily available, you charge it. These impulsive buys can quickly add hundreds of dollars to your debt total. This is why it pays to start a no “junk” streak. This can be done on paper or in an spreadsheet document. The idea is to simply keep up with how many days you can go without buying something you don’t need. Set a goal to go 30 days and once you reach that goal, keep going. Every time you slip up, write down how long the streak lasted, the dates of the streak and how much you spent when you broke the streak. This simple information can be a real eye opener.
The No Credit Streak
This streak is harder for people to latch onto because many people are living above their means. This means you will probably have to find ways to cut expenses to avoid using your credit cards to pay bills. The principle is the same as that listed above in the no “junk” streak. You set a goal and keep up with how long you can go without using any form of credit. You also keep up with the dates, amount spent and how long you lasted. Once you get the hang of it, you’ll actually feel good about it. Look at your streak any time you think about using credit. Chances are you’ll see that nice streak you have going and rethink the need for that pair of shoes.
Debt management doesn’t have to be boring. There are a number of creative methods you can use to take control of your debt and finally pay it off. Think about your own spending habits and determine what streaks you can start to help you better control your debt.