The best thing to do to see how you stand with your credit card and how much you are paying back to them each month, is to calculate your monthly earnings and then calculate what you can afford to put back into your credit card account. You will then you have to divide your earnings by what you make in payments to your credit card and if you arrive at a figure of 15% or more going towards your card debt, then you are facing the chance that you are falling through a debt trap door that you cannot get out of.
If you find that you are in this position, the best thing that you can do is to stop using your credit cards and look at other areas in which you can cut back in your expenditure. The thing that I am going to suggest may not be what you would think, but it can go a long way to saving you a lot of money. The area in which you can save cash is your grocery bills, ?but I have to eat? I here you say that is true as it is a fabric of our being, but it is the manner in which we spend our cash on groceries, that costs us a large slice of our monthly bills being higher than it should be.
Lets start with how many times that you have been looking through the newspapers, and you have came across money off vouchers on products that you do usually buy and ignored it and then threw the paper in the bin? Loads of times I bet and when in the supermarket do you go for the big named brands that are a lot more expensive but are told that they are of higher quality? Of course you do, but the fact of the matter is that the big name brands are not that much better, than the stores own branded labels and in many instances the product is made in the same place and are very similar.
Even if you see the big named brand with a promotion of 50% free or buy one get one free, you will find in many instances that it will still be cheaper to buy supermarket own brand products. And what you must also remember is that these firms are not going to sell their products at a loss. So just think at the high mark up price that they are usually at when not on a promotional price.
So by cutting down on your grocery expenditure, you will soon see the difference in your credit card debt, as you put what you are saving back in to clear your credit card balance.
At the same time as cutting your debt, remember to pay your credit card bills on time. Credit card late repayment penalties can work out to be very expensive and could actually undo all your good work. Credit card late payment penalties are currently being brought down to ?12. This reduction was brought about by pressure from the Office of Fair Trading (OFT)
The best way to reduce your credit card debt is to cut back your spending in some area and apply that savings to your credit card debt. Be careful, though: You will not reduce credit card debt if you spend the money you save on something other than your credit card balances. An easy way to reduce credit card debt is to reduce your spending on food and drink consumed outside of your home.
Be Aware of How Much You Spend on Food
You need to be aware of just how much money you are in the habit of spending on food on a monthly basis. Doing so will make you realize just how much money you could be saving if you spent just a little bit less on snacks and convenient, ready-prepared drinks.
The easiest way to make these changes is to make them one at a time. Drastic cutbacks will leave you feeling deprived, but if you gradually change the way you spend money, you will gain a sense of pride and accomplishment in your achievements.
Coffee Drinks: How to Cut Back
Starbucks and other coffee shops are ubiquitous in today's American culture, and there is a long line of customers waiting for service most mornings. Specialty coffee drinks usually cost $3 to $5 by the time you tip the barista, and you might spend even more if you also purchase breakfast foods, like croissants, scones, and bagels, to go with your latte or mocha.
Reduce credit card debt by making coffee at home and skipping the stop at the coffee shop. You can buy a coffee brewer and a pound of coffee for about the same amount you spend on coffee drinks in one week.
Both Peter J Kenny & William Blake are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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