Recently, while printing out my credit card statement, I really gasped when I saw the interest I paid in one month: $24.66 on a balance of $1,650. My payment of $50 barely put a dent in the balance! I am lazy thinking how many hours I have to work just for the interest of this one card, as my financial goal I decided, for 2013, to eliminate my credit card debt. I cut that card and tossed it in the trash where it belongs.
My second line of credit has a balance of $750 and much less interest. (Conventional wisdom tells us to keep at least one major credit card, and I agree with that.)
In addition, I have a few credit cards with small fees, but interest are high.
My net income is only about $1,200 a month. I don’t use credit to go on vacation or buy luxury, I use credit to survive; pay an electric bill or buy groceries. But how can I avoid this? What can I do differently in 2013 that can change that? And where can I cut?
I realized that eating out was taking a chunk out of my income, mostly fast food but the occasional restaurant as well. I plan to reduce it to only twice a month from the current average of six to seven times a month. At an average of about $8 a pop, the number I eat sometimes will save $40 a month.
I will change my bad habit of paying off my credit cards and then using them again. Doing so is a sure fire way to never solve them. Also, paying only the minimum payments never gets you anywhere in the balance. So I think it pays at least double.
I cut my cable down to only about 20 times, saving about $30 a month. My ceiling fans have three light bulbs in each, but I only have them one or two and this month He submitted my electric bill. I also clipping coupons for both food and health and beauty products, saving $30 to $40 monthly.
I have two vessels to change; one a penny, the other a quarter, a dime, and a nickel. Whenever I buy something, the change goes into the barrels. For example, if a soda comes to $1.03, I pay with $2 and get .97 cents back, which goes directly into the savings bucket.
No, I’m literally saving my pennies, but they add up. Every six months or so, I only invest about $6 in pennies. A bottle with a second change costs almost $200 when it’s full and takes about six months. That wrapped change will go directly to paying bills.
We really look forward to seeing this on our credit report: “Charged Interest – $0” “Licensed – $0”.
