In writing this, I do not intend to condescend to anyone else's situation or act like what we have done would work for anyone else. But among my friends I am thought to be frugal, and I have often been asked what we have done to set money aside to pay down bills. Here are a few of the things that have helped us pay off our debt:
- You must must know where your money goes every month. Go through your bank statements, credit card statements, everything, and see where you are leaking money. Husband was paying $20 a month in bank fees, on an account that we barely ever use. Cancelling that was a savings of $240/yr, which is groceries for at least two weeks.
- write a list of all your bills. Which ones can be lowered? Netflix instead of cable? Library instead of renting? You might find that some of the free activities in your community also make you feel happier and get you outside more. Put what you save towards paying off debts.
- We use a credit card that earns us airmiles. I am not promoting airmiles by any means, but Husband is from Newfoundland and we save them for flights home for us. We are spending the money anyways so we look at the miles as a free bonus. NOTE: you MUST pay off the entire balance every month or your airmiles are costing much more than they are worth!