How to Reduce Costs to Pay Off Credit Card Debt
- 1). List all of your non-credit card bills in a spreadsheet or ledger along with the amounts. It helps to look at your costs to decide where you can make realistic reductions.
- 2). Change your cell phone plan to a less expensive option--every dollar matters. To stay under your limit, ask your family and friends to contact you via email for non-urgent matters. Track your usage daily to ensure that you do not go over the limits of your calling or texting plan. Choose between using the Internet at home or on your phone instead of paying for two different services.
- 3). Cancel your cable subscription and watch television online instead. Purchase a cheap movie subscription plan that allows you to watch movies on your computer or look for $1 movie vending machines at your local supermarkets and convenience stores.
- 4). Cut your entertainment budget at least in half. A large part of the average personal budget goes toward entertainment and dining out. Search your city or town's events page for free or low-cost activities. Eliminate eating out completely. Purchase food at discount supermarkets whenever possible and make your own meals.
- 5). Use an insurance quoting website to get estimates from a variety of different companies to see if you can lower the costs for your insurance needs.
- 6). Perform an energy audit of your home to reduce your electric bill. Check your electric meter for a reading at the beginning of the day and then again the very next morning to see your total usage for 24 hours. Make a conscious effort to shut off lights and electronics when not in use. Lower your usage of heaters and air conditioners. Perform another 24-hour check to see what the new usage is and let that motivate you to continue the trend in order to lower your electric bill.
- 7). Sell your car to eliminate that monthly payment and purchase an inexpensive, used car with high fuel economy with any proceeds from the sale. Consider a monthly pass for public transportation as another temporary option until you pay off your debt if you live in a metropolitan area.
- 8). Total up your savings and add it to your monthly credit card payment.
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