A Few Simple ways to reduce credit debt

30 Sep 2013

Finance

A Few Simple Ways to Reduce Credit Debt:

Most people do not realize that their credit debts are actually getting on top of them. The moment they find out that they are not capable of paying, most of their debts have reached their interest rates. The best thing you can actually do is to calculate your monthly earnings and then your monthly spending. The sum of your total spending should be at least thirty percent lower than your monthly interest. If you do not do this, chances are you will be interest will be piling over you.
You may be wondering, if you are now in this position, what may be the best thing to do? This may be a hard thing to do, but I think the best option or you is to stop using your precious piece of plastic otherwise known as your credit card. It shall be a really bad a habit to break but this will help you in a good way. You should also do everything you can to cut your expenses. Save on your grocery bills, only buy what you need and not what you think you need. Don’t feel bad, most people often have bigger grocery bills then suggested.
Here are a few tips to that you may use to start saving money. You should start a grocery list and just write down the essential things you need; your toiletries, your hygienic products, food, etc. Learn to plan ahead. Instead of going for expensive branded products why not go for its local counterpart. It will really save you a fortune. A good example here is by changing from the expensive Kleenex brand to your ordinary tissue roll or kitchen roll. The big brands don’t actually matter. It’s only the name you are after.
There are sometimes that even big brands such as the one mentioned above may offer a 50 percent promotion of a buy one take you promotion, before fooling for this trick better be practical and think. There are some instances that you can even get the same two items with a different brand for a much lower rate.
To sum these all up, by cutting your groceries to just the things you need you shall see the big difference from your credit card statements as soon as the next one arrives. The main thing to remember is to pay your bills on time. Don’t go over your due dates, you know how banks are. If you cannot afford their finance charges, then pay for you billings on time. Late penalties will undo everything you have worked for to make your billing low.

By Dumont Valentin