Ways to Reduce Debt

You may be re-evaluating the marital finances after listening to the audio, Mid-Year review and wondering what are some of the ways you can reduce debt immediately. Let me share with you what we did. Yes, I said we because I had to get my husband to buy in:  

1) Stop using credit cards all together. Oh yea, I know this might be hard for some of you and I encourage you to think about it this way, if you are using a credit card that is not tied to your bank account what you are doing is incurring more debt. A bank credit/debit card the money is coming out right away. But a credit card that is not, means that you are charging something that will continue to have future payments until you pay it off.

2) Pay your credit card bills on time which means seven to ten days before they are due. This way you do not get hit with those late charges which could cause you to end up with overage charges.

3) Be conscious of when your charges on your bank card actually hit your account. Hint: They usually do not hit your account the day you charge it, as a matter of fact it can take several days. I have witnessed several people in the bank mad because when all the charges hit their account at once, it put them in overdraft situations. They were not notified by the bank and all those fees make it worse.

4) If you work outside of the home, brown bag the lunch. Adds up really fast. The money you save put it towards a debt.

5) Do not fall into the trap of consolidating debt and then re-charging up all the credit cards. Recipe for disaster.

6) Make a list when going to the mall or other retail outlet and stick with it. DO NOT apply for the credit card offers.

7) Evaluate expenses that are monthly that are for personal and business. For example, look at your cell phone plan and is there a way you can get a better plan. I did this with our cable, internet and telephone with long distance. They were separate bills and we consolidated them into one and got a much better rate.

One of the business expenses that I have recently changed was we had a fax line that we were paying roughly $40 a month on and not using that much. I decided to research online fax services – cost, usage per month, whether or not there was a long contract and more. I ended up choosing an online system that cost me $9.95 per month. The difference I will put in savings.

9) Shop with cash and be disciplined to stick with it. I cannot tell you how many times I went to the grocery store or Whole Foods with a specific list and husband calls and says can you get a,b,c,d, and e. There has been times when it has sent me over the amount budget.  When I have been at Whole Foods if it was not a MUST HAVE – I put it back and stayed within my budget! So before you go shopping ensure that you have talked with your spouse to ensure you are getting or have discussed the extra items that they would like. The flip side of that – there are times when he goes to the store without knowing the dollar amount and has the list. If the twins have gone with him, when they come back I will ask them what did Daddy buy that was not on mommy’s list… and they sing like birds. 

10) EAT out LESS! This was a huge one for us. From the time I met my husband he has always liked to eat out. Don’t get me wrong – he is an EXCELLENT COOK and I’m good too. It’s just something about going out for him. So when we had to reduce this, in the beginning it was painful for him and then he began working with it. Cooking together promotes healthier meals and family time.

11) Review the grocery store flyers that come in the newspaper or mail. Be a conscientious shopper – look for the sales on the items you buy the most, use coupons and buy the items in bulk that you need to. How about this: our local grocery store sent us the reward coupons on several of the items we buy the most. That is what I like, reward me for the money I already spend. Some coupons were for free items, some were for a certain amount off and others were buy one get one.

12) When it comes to extracurricular activities – have some fun and get real creative. Plan a picnic at a local park (your only cost should be the food); instead of spending $20 plus to go to the movie (that doesn’t include food) two words – Red Box for $1.08 or Net Flix for $4.95 per month( that’s the lowest membership) and you can buy a box of popcorn at the store for a couple of dollars. The money that you save put it either towards a bill, savings or emergency fund.

13) If you are an avid book reader such as myself, don’t go and buy brand new. Get on the internet and check out Amazon.com to see what the book sells for used, go on ebay and see if the book is for sale or better yet – go to your local library and see if they have the book. MONEY SAVED!

14) A few weeks ago we were into major spring cleaning. My husband started it and I jumped on board and decided that old books that I have no use for, I will put them on ebay. Who would have known.. before the night was over I had some sales. Next thing I know, husband was bringing me old books that he had for me to put them on ebay as well. DO your homework when it comes to ebay, shipping cost and whether anyone would want your items.

15) This one might be hard – whatever that drink is that you have to have first thing in the morning or throughout the day – give it up for 30 days and see how much you save. I was updating my ledgers the other day and noticed that my husband had an expense of $3.02 that came out 4 times in one day. I called him and said what costs you $3.02 and he told me – its coffee. So imagine this $3.02 x 5 days a week equals $15.10 a week equals $60 a month. 60.40 x 12 equals $724.80 . Would $724.80 make a difference in your finances?

These are only some beginning ways to reduce debt. Do you have a way to reduce debt that is not mentioned here? Add a comment!