If you’re knee-deep in credit card debt, it’s simple to get caught in the minimum payment trap. But putting extra cash toward your credit card bill each month is your ticket to saving cash on interest and enhancing your financial flexibility. Here are a few methods to find more money to pay off your credit card debt now as well as in the near future.
1. Don’t go grocery shopping
We’re not suggesting you go hungry to get out of debt. But instead of going to the supermarket the next time you’re running low on food, take a second look at your pantry. You might find enough food to make a few decent meals if you’re creative.?You can then take whatever money you’d have spent on unnecessary groceries and put it toward your debt.
2. Enlist a trusted friend to chop your hair
The average price of a woman’s haircut in the usa is $44, based on data from mobile payment company Square, while a man’s haircut averages $28 (and that’s not including some advice). Let’s say a lady spends the average $44 for a haircut every six weeks – or eight times a year – that’s a typical savings of $352. That’s a pleasant chunk of switch to throw at debt!?However, because?you’re the one that needs to live with your decisions, be sure to look for a friend who has a steady hand.
3. Go out for ice cream instead of dinner
The thought of telling your pals you can’t go out on weekends because you’re trying to pay off debt may be terrifying. But with an average night, dinner and drinks could easily cost you $50. So instead of?going out for supper or drinks every weekend, try frozen treats or frozen yogurt. You’ll get to socialize, however, you can set aside what you’re saving to increase your credit card bill.
4. Reduce giving
According to the National Philanthropic Trust, 95.4% of yankee households give typically $2,974 to charity annually. In a 2014 NerdWallet study, the Nerds discovered that U.S. households that carry debt have more than 5 times that amount in credit card debt. Even though you cut the average giving in two to pay off debt, that’s almost $1,500 a year.
Repurposing charitable giving for debt repayment?might seem selfish. But because airlines?suggest when covering plane safety procedures, you can put yourself at risk if you don’t put on your own oxygen mask before helping your neighbor with theirs. The earlier you pay off your financial troubles, the more flexibility you have to give to charity.
5. Automate savings specifically to repay debt
One of the most great ways to save money is to treat your savings just like a bill, so why wouldn’t you set up a checking account meant for credit card debt reduction? Most banks permit you to set up a recurring transfer from your checking account to your checking account. An alternative choice is by using an automatic savings tool like Digit. Automating your financial troubles payoff?amount every month may give you less flexibility to spend your money how you want throughout the month. But once your charge cards are paid off, you’ll have more flexibility in the long run.
? MORE: How to repay debt
6. Sell your stuff
Chances are you currently have stuff lying around the house that you simply no more use. Instead of letting it collect dust, try selling it on Craigslist or eBay. ?An alternative choice would be to generate a yard sale. You may not obtain a lot of money for the things, but every last dollar counts when you’re tackling your financial troubles.
7. Book a room
If you’ve additional space, considering renting out your rooms for some hundred dollars per month. Because you’ll be sharing common living space, you’ll have to exercise caution with this particular option. The best option is to rent to a person you know. You may also list your extra room on vacation rental site Airbnb. The operation is simple, and Airbnb offers certain protections for hosts.
The bottom line
Instead of utilizing a debt snowball, try your debt snowflake method: Find little chunks of extra money in your day-to-day spending to make use of to pay off your credit debt. It might not get this amazing impact immediately, but small efforts like these will save you cash on interest and pay off your credit debt sooner.
