Frugality Wise

Tips, ideas, and resources for living frugally

Becoming Debt-Free

Image courtesy of renjith krishnan / FreeDigitalPhotos.net

Image courtesy of renjith krishnan / FreeDigitalPhotos.net

Are you carrying a lot of debt on your shoulders? The first step in living frugally is to pay off your debt…the sooner, the better! Frugality and¬†debt cannot effectively co-exist, so here are a few tips for becoming debt-free.

Pay off the full balance of your monthly credit card bill.

Paying only the minimum amount and carrying forward the remaining balance into the next month will incur interest charges towards your balance. Save yourself from paying unnecessary interest charges by paying off the full balance by the due date every month. I usually make one payment a month and pay off my balance on or prior to the due date near the end of the month. Some people choose to pay as they go, i.e. they will make a purchase with their credit card and immediately pay off the expense. So someone who makes multiple purchases with their credit card will make multiple credit card payments throughout the month. Whichever payment schedule you follow is up to you. The important point here is that you should have a zero balance prior to the start of a new month.

Cut up and cancel your credit cards.

I know, this one is a little drastic. However, if you lack the will-power to curb overspending then perhaps cutting up the credit cards is best for you at this time. Your savings account will thank you! Credit cards make goods and services exceptionally easy to obtain, and help enable impulse buying for those who lack will-power.

Read the rest of this entry »

Advertisements
Leave a comment »

%d bloggers like this: