Keep Credit Card Debt Under Control | Online Executive and Admin Assistant Training

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The Golden Rule About Money

Submitted by Ethan on June 16, 2009 at 02:36 PM

And the golden rule about money and life is…

...to make more than you spend!

So why am I mentioning this at our site which is geared towards supporting and teaching executive assistants, admin assistants and personal assistants? Because having control of your finances reduces your stress and sets you up to conquer your career without being hamstrung with uncontrollable financial debt.

Most of us, after graduating college, have been there…making the “minimum payment” on the thousands of dollars on our credit card, having to pay rent, eat and hopefully have a little left over to have some fun without ever having thought before about a salary, overtime hours or a budget.

The problem is the whole “minimum payment” thing. You see, just paying the “minimum payment” on a credit card seems like you’re on a tread mill that doesn’t end…you keep paying and paying and what you owe stays the same and deep down inside, this creates stress. And this stress can easily spill over into your work when your attitude takes a hit cause you think you should be making more money or offered that promotion…at least it did for me.

Alright then, what can you do? First, if you can pay more than the “minimum payment” due every month, say 30% more, pay it…and pay it consistently. Watching what you owe go down every month will start to feel really good and reduce your financial stress BUT…what if you can’t afford to pay more than the minimum?

You can take out another credit card!

I know, I know…sounds counter intuitive BUT if you CAN take out another credit card (read: allowed to), in most cases, you can do a “transfer” of any current debt you have to the new card at a MUCH LOWER interest rate for a period of 6 or 12 months. This allows you to keep paying what your “minimum payment” would have been on your old card on your new card and since the interest rate is MUCH lower you’re actually paying more of your principle down instead of just treading financial water.

Other option? If you know someone who could assume (read: pay it off) your credit card debt (or any other debt), you could agree to pay them 5-8% interest (way below what the credit card company charges) and then have that money taken directly out of your paycheck so you don’t even see it and put into the person’s account. Most paycheck companies will process this request if asked.

Just two options of many but being able to not dread opening up that credit card bill every month will greatly reduce your stress AND increase your positive attitude at work since you won’t feel like your back is against the financial wall.

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