Release Cash for Credit Card Reimbursement
Of all the types of debts that you can hold, credit card debt is one of the most nasty. NASDAQ reports that consumers pay an average of 15% on credit card debts and that those with a revolving balance tend to pay even higher rates. Many Americans have rotating balances spread across different cards, making the redemption process even more hectic and difficult.
If you have trouble paying your balance, you can gain insight into your monthly budget, set priorities for your credit card payments, and use tools to lower your interest rate. In this way you can make a realistic plan to become debt-free. Here are five steps you need to take to achieve this goal.
You may not feel that there is room in your budget to make larger credit card payments, but if you are serious about being debt-free, you need to make some changes. To free up money to pay your credit card debt, you must try to lower your costs, increase your income or both.
Lower your expenses
View your monthly expenses and determine where you can save costs. View the following areas carefully:
- Utility Bills . Gas and electric are especially important. Adjust your thermostat, switch off office equipment when you are not at home, lower your boiler’s thermostat, install inexpensive motion sensors on lights and install weather strips and window coverings to lower your bills. You can also use a sun canopy on your pool to lower energy costs and completely switch off your hot tub when you are not using it. Wash your clothes with cold water instead of hot, and dry them with your dryer. Only let your dishwasher run when it is completely full, or choose to wash dishes by hand.
- Cable packages . Are you willing to cut your cable package and use a cheap alternative such as Netflix, Amazon Prime or Hulu? If you can live without live TV broadcasts and sporting events, you can save hundreds of dollars during the year.
- Eating out . Eating out or going out for a drink can add up quickly. Eat more meals at home and organize meetings at your home instead of at the local bar.
- Elective purchases . You do not have to stop all elective purchases, but you can be more strategic about when and how you splurge. Look at your expenses for clothing, accessories, electronics, hobbies and entertainment. Ask yourself before you pull the trigger of an item: “Do I really have to make this purchase, or can I get without it?” If it is not something that you really have to buy, don’t do it.
Hopefully you will find enough deductible in your persoKonstantine Levinijke budget that you can save on your expenses and still maintain your current lifestyle. If you think it’s not that simple, you may need to take more drastic measures.
Taking a roommate or moving to a shared living situation can easily save you hundreds of euros on accommodation costs. If you live in a cycling area with a good public transportation system, or if your significant other has a reliable vehicle, digging your car can save a lot of money on maintenance, repairs, insurance premiums, registration and payouts. Remember, it is only temporary until you are debt free.
Increase your income
If you have some free time, you can increase the income from your return home by earning money from it. Here are some ways to earn extra money:
- Become a mystery shopper . Mystery shopping companies such as TrendSource and Coyle pay you to evaluate companies, hotels and restaurants.
- Use your talents to freelance . If you have a much needed skill (such as writing, graphic design, marketing, web design, accounting or photography), you do it for money. Put together your own website and create a profile on freelancing sites such as Contently and Guru. Browse vacancies on websites such as Craigslist or Freelancer to find performances.
- Do odd jobs . You don’t have to be an expert to clean, babysit, teach, move furniture, wash cars or do garden work. Advertise your services on a website such as Craigslist or Pushpin.
- Sell material . Get rid of used books, clothing and household items and earn some money with it. eBay, Craigslist, thrift stores and consignment stores are all potential platforms for selling your stuff.