Foresight and planning are two qualities that could enrich your lives and give you debt relief. Those with adequate foresight, your ability to look into the future, can plan for future contingencies well in advance and be prepared for them. Your retirement is one such contingency for which you need to plan well in advance.
Like most Americans, you too fell victim to the lure of plastic money. You had this false sense of purchasing power and bought every thing that appealed to you. The credit card company advised you to pay only minimum amounts. You more than willingly heeded their advice and some times even did not pay the minimum amount. The result was this huge heap of credit card debt. You are now desperately looking for debt relief.
It does not require a financial wizard to tell you that you planned poorly. I would say you never planned anything at all. You bought that lucrative gadget that cost $500 without having any plan as to how you are gong to pay for it. An effective plan or a budget may have helped you to avoid this financial crisis.
It is never too late to get organized. Make a list of all your expenses for the month. Typically look through the statements of your credit card for the last three months or so. This will give you a fair idea of what kind of expenditure you have been incurring every month. First separate out the expenses that are necessities and which you must incur every month. You can not do without them. This may be barely 30 percent of your total expenditure.
Thereafter make of list of your future purchases, or put together your wish list. Space out the purchases over the next three to six months so that your expenditure is more organized. Expensive products and gadgets can be bought in installments.
At the same time make a sound payment plan for your credit card bills. Set aside a substantial amount each month towards the bills. Paying 70 to 80 percent of your outstanding amount will make sure that your debt never surmounts and exceeds your repayment capability.