The last payment on a large credit card debt that has held you down for years is an incredible feeling. Getting into credit card debt can be done in a few short weeks, while getting out of it takes years. Those years are often filled with intense budgeting, meeting with debt experts, side jobs, and other alternative ways to dig oneself out of a hole.
Despite how hard it was to get out of debt, many people find themselves back in the same situation just a few short years later. Getting into credit card debt is simply too easy. That being said, here are the most important things you can do as soon as you are out of debt in order to stay there.
Oftentimes people that get into debt don’t do so because they were buying lavish expensive cars or paying for expensive vacations. Rather, they had a life event occur that they could not afford, and debt was the only choice they had. While this is understandable, it can be easily rectified by saving money each month so that you have a little bit set aside for issues like this. DAS provides many ways that you can save money besides just taking cash out of your paycheck each month. Utilize just a few of these and start building your savings as soon as you can.
Sometimes you may be tempted to go and get another credit card. These times can be really hard, especially with how easy credit card companies make it today. Try to keep a journal, preferably a video journals so you can go back and remember just how hard your life was when you were in major debt. As human beings one of our biggest weaknesses is often that we forget mistakes and make the same ones over and over again. A journal can help break this trend.
Find cheap activities
One thing that often gets people to spend their money is boredom. They have nothing to do, and everything that they enjoy doing costs money. Eventually they do a little “splurge” on a credit card in order to alleviate that boredom, and the cycle begins again. If this describes you, it probably means you need to find some new activities. Find some good, cheap activities that you can do on a daily basis that can keep you happy. Perhaps it is playing racquetball at the local club, or simply going jogging. Whatever it is, a cheap, enjoyable activity can make saving and not spending much easier.
You are out of debt. Now it is time to start making the system work for you. Investors make money off of their money. Instead of paying interest every month, you can gain interest every month. Whether you invest in something like the stock market, or just put your money in a good CD or savings account, what really matters is that your money is growing instead of remaining stagnant or decreasing. Remember, you do have to retire some day.