I remember reading in the early 80s that if you had to pay for the basic necessities like groceries with a credit card that you were headed for serious financial difficulties. When I found myself breaking this rule more often than not, I knew I had to make some realistic changes in the way I was handling my money.
In an attempt to pay off my house faster than the 30 year 6.5% mortgage, I was paying extra principal each month. When finances are good this is a great idea, but when you owe more on your credit cards and the interest rate is much higher than your mortgage interest rate, cut back on that extra mortgage principal payment until your credit cards are paid off.
The experts will tell you to carry a brown bag lunch to work. In the real world that lunch out with your coworkers can make you seem more like a team player and this can help you advance on the job. That doesn’t mean I didn’t still need to make budget cuts here. I made a firm commitment to going out for lunch just once a week and carrying lunch on the other days.
I was spending far too much for my cell phone. The package I was signed up for included some features that I didn’t even know how to use. It takes some determination to figure out their plans, but be persistent. You’d be surprised at how much you can cut in unnecessary features.
Making budget cuts and applying the “found†money directly toward your debt or to cash payment for some items that you were previously using a credit card to pay for will help you get out of debt faster and help you gain a firmer financial footing in troubled time. If you are needing debt consolidation help or advice then fill out the form on the left for a free debt consultation.
Tags: debt consolidation
