In the 21st century, living without social media seems like an impossible feat. But, as unheard of as it may seem, some people have no qualms about giving up social media if that gives them peace of mind!
Don’t believe us? Well, you will after we let you know that according to a survey, a good number of Americans vowed to give up social media for as long as a year to clear off their credit card debts.
Letting go of social media – is it the only way out?
Since time immemorial, credit card debt has been an unavoidable issue with the salaried American class. And with the synchronous blows of the pandemic in recent years, life has taken a further turn. Delay in the salary transaction, new healthcare precautions, and the worst of all—loss of job—have added to the pile of debts.
Yet, who can get past the trap of social media shopping? Reports show that while confined to their homes during the pandemic, millions of Americans resorted to mindless scrolling and buying, leading to enormous credit card debts. One impulsive click on a “Buy Now” button led to regret for scores of people.
Been there, done that? We understand. But don’t think of giving up social media just yet! What you need are a few tips to save you from a major debt trap.
#1 – Strategize a card debt pay-off plan
The foremost thing that you need to do is repay the debts in small amounts in a scheduled order. This won’t create that massive pressure of repaying the entire amount at once. Alongside this, you can also follow these two popular credit card debt reduction strategies:
- Debt snowball – pay off the smallest debt first
- Debt avalanche – prioritize the highest interest loan first.
#2 – Consider consolidating your debt
While you can always negotiate for a lower interest rate, consider consolidating your debt. Doing this has the power to reduce the amount of interest and help you get out of the debt faster. This again has two methods:
- Balance Transfer Credit Card: It features a low or 0% introductory Annual Percentage Rate (APR) for a limited time and allows you to get rid of your existing credit card balances by using the new account.
- Debt Consolidation Loan: This can combine all your existing credit card account balances into a new single account, which in turn helps to lower your credit utilization ratio.
#3 – Staying within budget is the key
The major reason behind a huge pile of debts is the lack of awareness and a profligate lifestyle. In many cases it has been found that lack of a proper budget is a major issue. Experts suggest that chalking out a proper budget is of utmost necessity. So cut down your expenses from your entertainment sector. Doing this will not just eliminate your debts, but also help you save.
To wrap up
As said earlier, quitting social media or any of your favorite things isn’t the right way; they might ease you temporarily but to bring permanent changes, you need to bridle your profligacy. Follow these tried and tested methods and wipe out your debts.
