Budgets and debt go hand in hand when your talking about the long term effects of paying too much interest over time because it also affects the growth of your savings balances.
Consolidation is key
There are many cards out there competing for your wallet space and its time you took notice on how much power the consumer really has when deciding what type of card they are going to carry and what type of perks and benefits they are going to offer. I only know of one credit card that there is a zero balance transfer fee any amount you consolidate into it barring any existing debt with the institution. The Chase Slate credit card is by far the best cards out there to get a good handle on your balances and the interest deferral for 15 months is a nice perk to boot [take it while it lasts].
Sometimes this option isn’t available, but if you followed the other steps in my blog regarding minimalism you are on the right track because patience is truly key to success and it all begins with a strategic consolidation effort. You can also find out which card has the lowest interest rate but that’s pointless because they take on usually a 5% balance transfer fee.
Minimalism isn’t about minimum payments
This is true for your credit cards! we don’t make the minimum payments here. What we do is maximize the payments to cards we strategically want to pay off and that means pushing for maximum payment to the credits we choose to rid the balance. You can focus on one card and apply the minimum payments to other cards in an effort to pay down one as quickly as possible and move on to the next
The debt dependence mountain
This is the hardest climb down you will have to ever experience, I know it can be tough stop depending on your credit cards to maintain your lifestyle but you need to stop and need really cut those cards up or stash them somewhere out of reach. The best way to do this is cold turkey because if you notice on those credit card statements. You make payments, but you usually end up spending the equal amount of the payment or more!
This isn’t an overnight climb down but a long journey you have to take before you get down this mountain but by the time you do, you will feel lighter and more money in your pocket (picking it off the trees). The first step is creating that budget we discussed and also looking at making realistic goals to make that celebrity status you have been living non-existent.