Back to Frugal Credit
Basic Tips for
for Thrifty Moms
How To Reduce Credit Card Debt Quickly
Are you tired of making payments to your credit card
company month after month, but the amount owed never seems to go down?
Here are some great suggestions on how you can start taking control and
how to reduce credit card debt quickly.
Taking Control Of Your Credit Card Debt
The average American has over $8000 in credit card debt. Making
minimum payments and not accumulating any more debt, it would take you
30 years to pay off the card and thousands more in interest. Thatís why
an important part of any family budget is to reduce and pay off that
debt as soon as possible. Here are some ideas to get you on a road of no
more credit card debt.
Your first goal in reducing your credit card debt is to avoid
accumulating more debt while you work on paying the current debt off.
After all, what good does it do you to pay $200 toward your credit card
and then use it to make another $200 purchase. A good way to avoid using
your cards is to get rid off most of them. If you have a current balance
owed on the card and it isnít feasible to transfer the debt to an
account with a lower interest rate, simply cut up the cards to avoid
using them again. Close the credit card account as soon as you have paid
Your ultimate goal will be to only have one or two credit cards for
online purchases and emergencies. You will only be using it for
non-emergency purchases that you know you can pay off within 30 days.
Freeze Your Assets
Most of us like to keep at least one or two credit cards around for
emergencies. The problem is we end up using the cards to buy a new pair
of shoes, take our spouse out to dinner or buy that new TV we really
want. If you are prone to these types of impulse buys on the credit
card, try freezing them.
Yes, I am serious. Take a gallon sized Ziploc bag, drop your credit card
in it and fill the bag with water. Stick the bag in the freezer. Within
a few hours your credit card will be encased in a block of ice, making
it less convenient to just grab it and buy something. At the same time
you know you can thaw it out in a few hours if you really need it.
No More Impulse Buys
How many times to you go to the store with a particular item in mind and
end up buying a few extra things you didnít even know you couldnít live
without? Iím taking about impulse buys.
We go to the grocery store and are presented with all sorts of special
deals and easy grab-and-go offers at the end of isles and at the cash
register. We go to the mall to buy a white sweater and end up with a
pair of earrings or new boots as well.
Storeowners have figured out exactly how to push our buying buttons and
get us to purchase items on impulse that they know they couldnít sell us
if we took a moment to think about it.
Before you make a purchase, take a moment and consider if you really
need this now. For larger purchases sleep over it. Youíll be surprised
how many deals donít look quite as good anymore the next morning.
$20 Is All It Takes
Weíve talked at length about how to cut down on spending and using your
credit card, now itís time to start paying off the debt you currently
have. All it takes is $20 to get you started. Of course if you can come
up with an extra $100 or even more, go for it.
At the very least I want you to come up with an extra $20 a month and
add it to what you are currently paying toward paying off your credit
card. Start with the card that has the highest interest rate. If you are
currently paying about $100 a month toward that card, increase it to
$120 until the card is paid off. Then use those $120 a month and add
them to what you are currently paying toward your next card. Can you see
how quickly this can add up and get you out of debt Ė especially once
you have the first card paid off? By consistently doing this you can be
out of credit card debt for good in a few years.
THE AUTHOR: For more information about
making a budget
and taking control of your personal finances visit
www.ourfamilybudget.com and join our free newsletter.
Recommended Frugal Reading
Living On A Dime is known as one of the very best resources of its kind to help you get out of debt without depriving yourself.