- Benjamin Franklin
Being in debt is not at all sexy. Maxed out credit cards, high interest rates, debt collection calls and poor credit score wipe out the bright smile from your face. And with time, it becomes extremely tough to get a grip on your credit card payments due to increasing interest rates, late fees and fines.
If your savings are not enough to cover your credit card debts, then it’s high time to rein those bills and get a control over the situation. You need to stop splurging, pay back your creditors, and chalk out an effective credit card debt repayment plan. But for this, you need to increase your monthly savings - either by living frugally or by doing part-time jobs.
But, is it too tough to live frugally when you’re overwhelmed with credit card debt problems? Not really.
A little effort and rigorous self-discipline can help you lead a frugal life even when you owe thousands of dollars on credit cards. Rather, this is the best time to live frugally. Minimum monthly payments won’t help you clear your credit card balance. Gradually, your credit score will be completely destroyed and the credit card balance would go beyond your control. Frugal living will help you save more in the future. You can use this money to resolve your debt issues quickly.
The mantra is simple: save more from your monthly income. And, you can do this by reducing your expenses in various areas of your life.
Here are the 6 frugal living tips that can help you come out of debt hole by cutting your expenditures in various areas of your life and be free once for all.
1. Pack your lunch everyday
Packaged foods are expensive and unhealthy. Just tell me - does it make sense to spend $6 on a salad when you make a fresh salad with your favorite toppings at home for only pennies? I know that $6 doesn’t seem a big amount to spend for a salad. But remember you’re spending $180 per month on only salads every month. You can use this money to settle credit card debts. Some people say that brown bagging can help you save as much as $1800 every year.
2. Pamper yourself wisely
Haircuts, pedicures, spa trips, etc. can be costly. I’m not asking to live with a long hair and long nails. But, you can at least try to reduce your expenses in these sectors. Check out the cosmetology schools where students will be more than willing to offer hair care services at 50%-75% less price. Just book an appointment and get a nice haircut without spending a fortune.
3. Walk when you can
If your office or gym is nearby, then walk instead of traveling in a car. The exercise is good for your health. Plus, you’ll save hundreds of dollars on fuel every month.
4. Give up newspaper subscriptions
What’s the need of making costly subscriptions when you can get news and information online and that too for free? There are plenty of blogs where you can read your favorite magazines online within a few taps.
5. Go for a spending freeze
Could you live without spending a penny for a week? I’m not asking you to starve or do extreme hardships. All I’m asking you not to spend money in these 7 days. This will help you realize what you need to survive and what you can exclude from your spending list forever.
6. Go for a vacation in the off-season
Do you want to have a nice vacation with your family? If so, then pick a vacation spot and then find out when the off-season begins. You’ll save thousands of dollars on hotels and air tickets.
The last frugal tip
Use cash instead of credit cards when you’re going to purchase anything. Remember, you’re in credit card debt already. And it would be a dumb idea to pay extra money on interest rates and fees. If you need to buy anything, purchase it in cash. Every time, you take out your wallet to buy an item, you’ll remember your financial situation once again. And if there is no money in your wallet, then you won’t be able to buy an item. In simple words, you wouldn’t be able to buy an item that is beyond your affordability.