Did you know that the average amount of credit card debt among American households is nearly 16,000 dollars? When you throw in 23 percent interest, you probably cringe at the thought of the money people through away each year. Although it has always been wise to be thrifty, follow money saving tips, and live within your means, this is especially true today. As every American found out during the “Great Recession” of 2007, if you do not spend your money wisely, and follow some tips on saving money, it will catch up with you sooner than you think.
Learning to save money is one of the most common New Years resolutions of American spendthrifts. Unfortunately, few are able to stick to their resolutions and fall deeper into debt. Even if these folks cut out credit card purchases entirely, they are so buried in credit card debt and exorbitant interest rates, that they can barely tread water, financially speaking. In order to truly save money, those who are in severe debt must first deal with eliminating their debt by using simple tips to save money.
Among the most important tips on saving money is to take out all of your credit cards, get a pair of scissors, and cut all of them to shreds. If the creditors have not done so already, go online or call them up, and close each of your accounts. This way you will not be tempted to get a replacement card and fall back into bad habits. Finally, add up all of your debt, and do the same with all household income. Whatever is left, set aside 15 to 20 percent strictly for paying off your credit cards.
In order to do this, you will have to make some sacrifices and exhibit some restraint. Naturally, you will have to cut back significantly on unnecessary purchases like dining out and ordering in, nights on the town, and clothes shopping, but getting out of debt will be more than worth it in the end. At the end of the day, the key tips on saving money are discipline and sacrifice.
While “eliminating credit card debt” is easier said than done, there are plenty of tips on spending money that can help debtors to do just that. Of course, it requires them to sit down, assess their financial situations, total their debt, and come up with realistic plans to chop away at their balances. By following some basic tips for saving money and using self discipline, they will soon be on the road to financial stability and freedom.