What You Should Be Doing To Stop Your Debt From Increasing

Millions of Americans rely on credit cards to make day-to-day or big purchases. The Federal Reserve Bank of New York reports that American citizens had total personal debt exceeding $13 trillion as of the end of 2017. Once you’re in debt, it’s easy to let it rule your life and to carry on spending money which you haven’t got, but, it’s essential you find methods to pay off your debt and to stop it from increasing further.

Live within your means

Yes, it’s nice to have all the latest gadgets, to go out for fancy meals every weekend and regularly attend gigs, but, if you don’t have the finances to fund this lifestyle, then you need to give it up. There’s no need to rent a 3 bed town house in the city center if it’s just you and your dog who reside there. Instead, opt for a home which is conveniently located to your place of work to reduce travel costs. You should also seek out a property which is appropriate in size for the number of people who will be living there and consider options away from the main cities and towns, where rental is typically high.


Budgeting is vital in putting a halt to spiraling debt. You’ll likely know how much you’ve got coming in each month, but, if you’re unsure how much goes out, then you’ll have no idea where to make cutbacks. Make the time to go through every single expense and review exactly where your cash goes. Visually seeing that you spend close to $100 a month on takeout coffee and food should be enough to encourage you to buy a travel mug and make your own to take on your daily commute.

Take out a personal loan

As someone in considerable debt, you’ll no doubt have a poor credit score. However, in order to make a real dent in paying what you owe back, to make repayments easier to track and to benefit from fixed interest rates, taking out a personal loan could be the best option for you. Typically, the interest rates on credit cards can be as high as 20%, whereas, companies offering personal loans tend to offer much more competitive rates. Therefore, the debt you owe won’t continue to rise.

Cut up your credit cards

You can’t continue to increase the amount you owe if you have no means to do so. Cutting up your credit cards can be exhilarating and is often the first step in gaining back control of your finances. It’s advisable to pay for all purchases using cash and in person rather than going online or using a card to pay for any goods. Being able to see the amount you’re spending makes you appreciate your money more and means you’re less likely to spend it on unnecessary items.

Individuals in debt should take action to stop their debt from increasing further and find ways to pay back the money they owe as soon as possible.

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