Can a tight budget help you pay off your credit card debts fast?

Can a tight budget help you pay off your credit card debts fast?
by Erica Smith

For most people in the US, the thought of following a budget brings devastating thoughts of penny-pinching and crunching numbers in their minds. Most Americans love to hate a budget and this is the most obvious reason behind the surging level of national credit card debt. No American uses a credit card payment calculator to determine his total debt amount while opting for an option that can make them debt free. According to most financial experts, a budget is the secret to financial freedom.

A budget is the base of all financial foundation and without it you're most likely to drown in credit card debt. As credit cards can trash your credit score and make you completely unworthy of getting new lines of credit, you must always make sure that you follow a tight budget to pay off your credit card debts fast. Here are some steps to follow in order to be able to pay off your credit card debts fast and become debt free.

1. Create a frugal budget that can be followed: You must create a tight budget that eliminates all kind of unnecessary spending on items that you can do without. Make sure you keep a close watch on the amount of money that you make each month and the way you're spending that money. See where each penny goes and make improvements if you think that you're spending in unnecessary places. Frugal living is the ultimate secret to financial freedom. Live within your means and follow a tight budget.

2. Save enough money: Without boosting your daily savings, it is almost impossible for you to pay off your financial obligations. With the rising commodity prices, it is pretty difficult for someone to make ends meet until he goes through a salary hike. The only way he can become debt free is by saving at least 10% of his monthly income. As per a survey done by some financial experts it has been seen that 2011 has seen a large number of individuals who have started saving 8% of their monthly income. This is a positive sign for the US economy.

3. Stop using your credit cards: If you want to get debt free sooner, you need to make sure that you stop using your credit cards. The more you use your cards, the more you dig yourself deeper into the debt hole. Lock them in your cupboard and go shopping with cash.

4. Trigger paying off your debts: As you gain positive results through your saving efforts, you must start triggering off your credit card debts one by one. You can start with paying off the high interest rate debt first and then concentrate on the accounts with lower rates. This will facilitate your debt repayment procedure.

Thus, after going through the concerns of this article, you must have been intrigued by the necessity of following a tight budget to pay off your credit card debts fast. Determine the debt amount by using a credit card payment calculator and save money according to your needs.