10 Top Tips to Cut Your Debt in 2011
(News4us.com) February 01, 2011
2010 was a tough year wasn’t it? So to start off the year in a positive way, I have put together a list of 10 ways you can start to cut your debt and get your finances in shape. Enjoy!
Keep a money diary
Where does all your money go? Well you might actually be surprised. Try keeping a money diary, make a note of every penny you spend (try putting it in a spreadsheet). Once you know exactly where you are spending money you will be able to see places to save it.
It’s often tempting to eat out, especially if you don’t have anything interesting in the cupboards. Rather than spending $50 on a meal out, go shopping, that same $50 will buy enough food to feed you for the week!
Walk or cycle
Small car trips cost a lot more per mile, walking or cycling will get you fitter and save you fuel costs.
It’s tricky balancing money when you don’t have a lot. Don’t ignore the problem, if you keep a close eye on your finances you will be more likely to avoid slips – which can lead to bank charges.
Pay off early
Debt accumulates interest. If you can pay off some debt now you will save yourself extra interest costs later. Paying off overdrafts is a great idea because you will always have access to the credit later if you need it… if you are really frugal this month, you will be that much better off next month.
Make lunch to take to work, you can easily cut your lunch costs to $2-$3 a day. A trip to the sandwich shop might only cost $7, but that’s a saving of around $100 a month. Small savings add up.
Sell your stuff
You almost certainly have some junk lying around that you don’t really need any more. Why not put it on eBay and pay off some debt? Remember, the more you pay off now, the lower your interest payments.
Overtime or moonlighting
If you can find even a few hours a month to do overtime, or moonlight in some other job, that is all extra money you can put against your debt.
Reduce your bills
Like it or not, phones, cable tv, high speed internet are all luxury costs. See if you can switch to a cheaper option, find a cheaper supplier, or perhaps even get rid of the service all together.
Focus on high interest debt
This is obvious really, but you may not have thought about it before. Higher interest credit cards are costing you the most, so it makes sense to pay these off sooner. If you have access to a lower rate overdraft, why not use that to pay off your card? (and then cut up your card so you can build up any more debt).
About the author
This guest post was written by Ricky from http://www.pensioncalculator.org – your best resource site for financial planning and retirement planning.
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