Most of us at some point in time think about our future and where we hope to be 5, 10 or even 20 years from now. But are we going to be able to get there? For some, it may mean putting a child through college, traveling or building a dream home. For me, it is being able to spend the winters in a warm place and being able to work when the urge hits me and not because I have to work.
If you have credit card debt and you carry a balance, you are basically throwing your money away. And since most of your dreams require money they are going right out the door along with your interest payments. Credit cards allow you a short term loan (21-30 days) and after that you begin being charged for anything that has not been paid off.
If you have $10,000 in credit card debt with a $19.9% APR and you make only minimum payments, it will take you 9 years to payoff that debt and it will repay in excess of $21,000. Now think about what you could have done with the $11,000 that you gave to your credit card company. Now, think about what you could have done with that amount invested at 10% per year.
It is never too late so start. If you have credit card debt, you need to make a list of what you have and evaluate your debt relief options. Many people just need to take a look at where they are spending their money and make some adjustments. Decide what you can live without. How much of your monthly income is going towards thing you could truly live without.
Are you able to cut $10 or $15 dollars a day out of what you spend? If so, that will give you an extra $300-$500 to pay towards your debt every month. If you are able to double your payment amount and stop using your credit cards, this will cut your payment time in half and slash your repayment amount significantly. There is no better time than today to begin a debt repayment plan.