It’s time to face the facts: Debt can be a tricky thing. It can sneak up when you’re not looking, but once it’s there, it’s not going anywhere.
The old stereotype of the person with credit card debt is not so frequently the case anymore. That stereotype was of the young professional on a low salary spending way more money than they brought in–on cars, clothes, salon services, entertainment expenses, and the like.
Today’s credit card debt is much more likely the result of rising education, healthcare, and housing costs. While those costs rise, the available income opportunities are not.
Increase Your Income
This might sound like dumb advice. “If I could earn more,” you might say, “I wouldn’t be in this mess in the first place!” But the truth is that there is almost always a way to earn a little more money. You don’t have to ask your boss for a raise or promotion (although it might not hurt). Instead, look to the gig economy for answers. Or, although it might be difficult, try getting a second job for a while.
The goal isn’t to increase your income to maintain your current lifestyle or even spend more money. Instead, let’s look at another essential step: decreasing what you spend.
Decrease What You Spend
Even if you start to earn more money, you should still cut back on spending. This can seem like an overwhelming challenge at first, but some of the most common ways to begin include eating out less often, cooking simple-yet-nutritious meals with “scratch” ingredients (like dried beans and whole grains), learning to repair or re-use items instead of buying new things, canceling entertainment subscriptions and using free resources from the public library instead (some of which now include digital streaming), exchanging high-cost hobbies for low-cost or free hobbies, and cutting back on impulse purchases.
Set Aside Something Each Paycheck
No matter how hard it seems, you should start setting aside a little something for your savings with every single paycheck. If you get paid on the first and fifteenth of every month, that’s 24 paychecks a year. Set aside $20 for each paycheck, and that’s $480 a year. It may not sound like a lot, but it’s the start of an emergency fund. And once you start saving, it gets easier. You tend to say, “Maybe I can make it $30 a paycheck” or “I’ll set aside 80% of all my side hustle money.”
Change Your Money Mindset
If you work to increase your financial income, decrease your financial outcome, and set aside a little money every time you get paid, you’ll already be on the way to changing your mindset. But you can speed up the process by learning more about how to handle money responsibly. Go to the public library and read or borrow books on personal finance and debt management. If your library uses the Dewey Decimal System, you should find these books at 332.02402. If not, ask a librarian for help. You can also do an internet search for changing your money mindset.
Where Polo Funding Comes Into the Equation
Polo Funding is a company that will help you consolidate your credit card debts. The way that credit card debt generally works is that, as you carry a balance over from month to month, you get stuck with a lot of interest. If you are struggling, you’ll probably only pay the minimum monthly payment, which means you’re only paying on the interest. You’re not even making a dent on what you owe!
This is where debt consolidation companies like Polo Funding come into play. They help you stop paying your monthly payments to the credit cards. Instead of several high-interest payments every billing cycle, you only pay one payment at a set interest rate to the debt consolidation company. This can be a faster and easier way to get rid of your debt burden.