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Ways To Cut Your Debt |
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 Forty-four million
households, or 57% of all credit card users, carry an average balance each
month of over $8,000. Since the average interest rate on that debt is
17.11% that generates about $114 per month that each household pays in
interest. For some families, such payments may be little more than an
annoying inconvenience, but for others it’s quite serious. Yet if you took
that money and invested it on behalf of your children (assuming an 8%
return for 18 years), you’d have almost $55,000 to cover their college
tuition.So here are some great ways to help you get out of debt or cut back on the debt that you currently have. Cut Up Your Credit Cards It’s just too tempting to have more than one card. Have you ever paid the balance on one card only to run up another card the next time you went shopping? If that sounds familiar, then cut up all of your cards except one. Transfer The Balance If you get the opportunity to transfer your high interest debt to a lower interest rate, do it. Call your credit card company and ask them to lower your rate;, otherwise you’ll need to transfer that balance to another lower interest card. Drop Some “Guilty Pleasures” Once you begin to track where your money goes, you may be surprised at how much you’re throwing away. Consider the coffee drinkers who buy 2-3 cups of premium coffee at their local coffee shop each day. If they dropped that indulgence to just one cup per day, |
they’d save enough money to put $1,100 in their IRA account.
Spend Less Than You Earn |
