Budgeting, getting out of debt, and not using credit cards isn’t always an easy task. Most financial experts will recommend that before embarking on a debt reduction and savings plan, a consumer should have a firm grasp of where his or her money is going. This means tracking every purchase is necessary. A recent international survey commissioned by Visa USA and including 1000 US consumers suggests that “mystery spending”, money spent but not accounted for, can contribute to the break down of even the strongest resolve to get on the right track financially.
The Visa survey shows that the average adult consumer loses track of an average of $21 each week or over $1000 each year. Young adults in the18 to 24 age group can’t account for more than $2500 per year. These are amounts that could otherwise be used to reduce debt or increase savings.
When asked where they thought their mystery spending was occurring, 34 percent of the respondents stated that it was mostly likely in purchasing food and other groceries. 32 percent responded that the unaccounted for amounts were spent on non-essential purchases. 31 percent speculated that the mystery sums were spent on entertainment while 26 percent responded that dining out was the culprit.
Getting out of credit card debt requires determination and part of any plan should be tracking spending. Keeping a small notebook and jotting down every purchase should help. For some people, using a debit card helps to by providing documented record of expenditures.
