Paying off Credit Card Debt and Saving


When you are trying to save money, one of the first steps you must take is to eliminate high-interest debt as quickly as you can. Far too many people have the anchor of credit card debt hanging around their necks, keeping them from reaching their savings goals. I

f you want to eliminate credit card debt and boost your savings, follow these tips to get your budget under control.

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Cut up Your Credit Cards

The first step in eliminating your credit card debt is to wean yourself from using your credit cards. This can be a very difficult habit for most people to break. It takes a total change in mindset for most people to stop using their credit cards.

You have to force yourself to consider the consequences of the debt you accrue to keep yourself from charging with them.

If you want to ensure that you don?t use them, cut up all of your credit cards except one that you absolutely only use in case of emergencies. Also when choosing a credit card why not consider the points you are also investing in? If you have to use one, make sure there is an added bonus or value to the money you are spending. Aeroplan points add up and could be a great way of saving for a vacation.

Look for Ways to Save

When you put down your credit card crutches, it is often a little bit of a shock to your system. The amount of belt tightening that you do can be hard to adjust to. The best way to make this as easy to bear as possible is to look for smart ways to reduce your budget.

Think about bringing your own lunch to work. This move alone can save you hundreds of dollars a month. Also, try to cut down on the Starbucks trips. Stop buying bottled water. Simply looking for simple areas like this where you can save money will do wonders for your budgeting.

Create a Budget

The only way to stay within a budget is to create a firm budget and to stick with it. You might want to read my past article Why Your Budget Sucks.

First, you should figure out how much money you have available every month. You also need to track all of your purchases for a month. Once you have these figures in hand, you can use them to create a budget that you can live on. If you pick through your budget with a fine-tooth comb, you will be able to find areas that you can save money. These savings will allow you to pay down your credit card debt faster.

Paying down debt and saving money isn?t glamorous. However, the rewards are handsome for those who do it. The peace of mind and security that living within your means gives you are priceless.


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