How Moms Can Eliminate Credit Card Debt

Posted on November 2, 2009
Filed Under debt | 2 Comments

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This is a guest post by Debbie Dragon who is a freelance writer providing articles for Billeater.com, a site that helps it’s readers compare insurance and discover tricks for saving money. She is also a single mother of two young boys and is currently working on eliminating her own credit card debt.

Credit card debt is unfortunately a way of life for the average American family. We’re enticed daily with the backwards motto to “buy today, pay eventually”. Many struggle to simply make the minimum monthly payment. For the many moms who are the family bill-payers, here’s some effective and easy ways you can eliminate credit card debt.

First and foremost, pay for your purchases in cash. You can prepare for this in advance, once you are determined to eliminate your debt, by setting aside at least $20 a week or more if possible, to start a petty cash fund. Commit to using your credit cards only in an emergency or a situation that requires a credit card, such as renting a car.

Review charges you consistently make on a monthly basis. These charges may include membership fees, subscriptions, automatic bill payments, gas for your car, prescriptions, sports equipment and uniforms, school tuition or orthodontist appointments. After listing them, determine how much money is to be allocated monthly for each payment. You may need to cancel the non-essentials. You can exercise at home for free; and if you don’t read half of the magazines you’re subscribed to then cancel them. Eliminating gym fees and subscriptions alone could save you hundreds of dollars per month.

One common sense method for moms to eliminate credit card debt is known as the Debt Reduction Pyramid. Basically, it’s a process of determining all debts owed starting with your smallest debt, and then pay off each one fully, working your way down to the largest debt. Predetermine to pay above the minimum payment for credit card debts. Once some of the smaller debts are paid, begin to pay full monthly payments. Continue this process until you successfully pay off all your debts in full.

Moms, a budget may sound too simple and over-rated but it can be the single most important tool for eliminating credit card debt. By creating a personalized budget and strictly adhering to it on a daily basis, you will reap the benefits and see your debt dwindle before your eyes. Remember to place your non-essential expenses at the bottom of the budget’s priority list.

Just by following these simple steps, you are well on your way to eliminating credit card debt. Reconsider those club memberships and pointless magazine subscriptions in order to organize expenses in priority-categories. With a debt as small as $10,000, if you’re only able to make minimum monthly payments it will take you 40 years to pay off that debt.

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Comments

2 Responses to “How Moms Can Eliminate Credit Card Debt”

Netanya on November 3rd, 2009 5:26 pm

At the moment I do not have a credit card for fear I will go overboard. I know eventually I will need to get one, and these tips will help keep my credit card purchases in perspective; hopefully preventing me from having to pay large amounts in credit card debt.

Netanya
Money Hackers Blog Ambassador
Investment Izzy (19 comments.) on November 6th, 2009 2:06 pm

During this hard economic time, it is crucial to re-evaluate expenses because I know that sometimes things are overlooked because I am just accustomed to paying it every month that I never think about cutting it as an alternative method like the monthly gym membership.

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