Tuesday, August 9, 2011

A few frugal habits to get rid of debt

Guest post by Anya Bennett

The post recession U.S has seen a lot of debt burdened people striving to meet their daily needs. If you are among those unfortunate folks, you can certainly shed off you debts by living a frugal life. If you have acquired a loan on credit card, student loan or other loan, you can easily get out of it by living more frugally. By undertaking a good debt management plan, you can easily make significant changes in your debt levels. To avoid debt, make sure you never spend more than you earn.

Loans and Credit Cards

Accumulate all your monthly loan and credit card statements. Find out what is the minimum amount that you have to pay each month. If you are not in a position to pay even the minimum amount due each month, call the Consumer Credit Counseling Service at 1-800-388-2227 to put things in order and consolidate your debt.

Try to pay more than the minimum on the particular card that has the highest interest rate. Once you have paid off that, go after eliminating the card with the second highest interest rate. Never use your credit cards unless it is an absolute necessity. Avoid purchasing such items that you cannot buy with either debit card or cash.

Cut on Spending

Slash back on your monthly spending. Check your monthly bank and credit card statements and find out how to save some bucks. Consider ending your home phone connection if you are already using a cell phone. You can rent movies at your home instead of going out. Consider having a roommate if you are staying abroad and alone. These days, a monthly mortgage payment is perhaps the biggest expense. So if you are struggling to pay the monthly mortgage bills, think about a responsible tenant. Try to prepare your own lunch instead of buying from outside and make the most of public transportation whenever and wherever possible.

Save Money Each Day

Find out small and petty ways to save money each day, which we often overlook. For instance, instead of possessing a high-dollar martini, split a pitcher of beer or make use of home wine when enjoying with friends. Instead of going out to dine with your husband, stay home and prepare a nice dinner together. Make sure you have made enough, so you have bits and pieces for the lunch the next day.

Life Insurance

Cease your life insurance policy if you are alone and ruined. Instead of putting that money toward your life insurance policy, involve it toward paying off your student loans or credit card bills.

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