Posted by: thesavinghabit | May 12, 2010

Down With Debt / Weekly deals 5/13-5/18/2010

In today’s society, most of us have developed an attitude of “I want it NOW.” Who cares if you don’t have the cash? You can pay on a credit card and then it only costs a small amount each month, right? WRONG!!! With the interest rates and bank fees, that item can end up costing you quadruple (if not more) of what it would have cost if you had paid cash.

I will be the first to admit that I like credit cards and use them regularly. However, what we do NOT do is charge unnecessary items to pay later. We use our credit cards as a budgeting tool, and pay them off each month. I will also admit that it has not always been that way and we do still have some credit card debt we are trying to pay down. But our goal is to not add any more to our debt load. However, if you cannot be extremely disciplined with your credit cards, don’t carry them with you. Just recently I was reminded why being in unnecessary debt is never good. Our credit card that we carry a balance on has always been one with no annual fee, and we got in on a great rate that lasts until the balance is paid in full (as long as we are not late with payment). However, what we didn’t consider is that the banks can change the rules whenever they want. So my formerly “free” card now has an annual fee which is higher than my minimum monthly payment. Not good. Unfortunately, we are stuck with it because it would cost us a considerable amount to do a balance transfer to another card since most banks have eliminated the maximum balance transfer fee. And, we’d end up paying a higher interest rate. So, our best option is to leave it as it is. It made me wonder if the bank could suddenly decide they wanted the balance paid in full? Then what would we do? Our best bet is to get out of debt as quickly as possible and stay out of debt – at least as far as unsecured debt is concerned.

Here are a couple of tips to eliminating debt:

1) If you want something that is not an urgent necessity, just walk away! Impulse buying is a huge part of our society’s financial dilemma. Pick a dollar amount that you will not go over without waiting a week or two to purchase. For example, anything $40 or above cannot be purchased immediately. Go home, research the item, think about it, do some price comparison shopping and decide if you really have to have it or not. More often than not, once the impulse is gone, you will decide you don’t need the item that badly.

2) Work on paying down one debt at a time. If you have three credit cards that each have a minimum balance of $50, don’t pay $60 on each. Instead, pay $50 each on two of them and $80 on the third one. That way, one complete debt will get paid off faster. Then once that third one is paid off, take the $80 you were paying on it and add to the $50 you are paying on another one and pay $130 a month on it until it’s paid off (while still paying $50 on the other one). Then when that one is paid off, take the $130 a month you were paying on it, add it to the $50 you were paying on the final card and pay $180 a month until it’s paid off. You’ll have a sense of accomplishment when you see that balance get smaller each month. Once one bill is paid off, you will have more flexibility in budgeting for other necessities.

3) Build an emergency fund. Many of us don’t get into debt because of unnecessary spending, but rather due to lack of planning. How many times has your car broken down, or a major appliance, or had some other emergency come up, and you haven’t had any money to pay for having it fixed? If you start planning for the emergencies, your life will be much less stressful when the emergency happens. I know many of you feel like there isn’t anything left over TO save for the emergency. Trust me when I say I fully understand! I’m in the same boat. But, it’s amazing how quickly even $5-10 per paycheck can build up if you set it aside consistently. Personally, we set that money aside in an online bank account (ING Direct ) so that it’s not as easily accessible. If we want the money, we have to wait a few days for it to get transferred to our checking account. It helps us to work harder at not using it.

Now, on to this week’s deals.

Know the Lingo
BOGO – Buy one, get one free
SS – Smart Source (coupon inserts in Sunday’s papers)
RP – Red Plum (coupon inserts in Sunday’s papers)
PG – Proctor & Gamble (coupon inserts in Sunday’s papers)
GM – General Mills (occasional coupon inserts in Sunday’s papers)
Blinkie – coupon dispensers in stores
Peelie – coupons found on products that you peel off
Hangtag – coupons found hanging on bottles
All You – Magazine sold at Walmart or via subscription

Whole Foods: Click here for their coupons. If you prefer to shop at Publix, they should accept these as competitor coupons.

Publix Greenwise: Click here for their weekly ads.

Many thanks to IHeartPublix.com for their great tips on shopping at Publix!
.
Ask IHeartPublix.com. Have a question about using coupons or shopping at Publix? Click here to read answers to questions or submit your own question.

For Publix “Super Deals” for May 13-19, please click here.

For Publix full sale list with coupon match-ups, please click here.

Renita’s Favorite Money-Saving Sites

http://cvssimply.blogspot.com/
http://www.specials.publix.com
http://www.iheartpublix.com
http://www.iheartwags.com
http://www.iheartcvs.com
http://www.cvsdeals.gather.com
http://www.grocerydeals.gather.com
http://publixpennypincher.blogspot.com
http://www.southernsavers.com
http://freefrugality.blogspot.com
http://getadealdude.com

E-Book now available!
I’m excited to tell you that my book is now available as an e-book! So, you can save money while you learn to save even more money by purchasing an e-book instead of a traditionally bound book! For more information, please click here.

Renita is a resident of Palm Beach County, and author of “Wow! You Saved How Much?” For more information, visit her website at http://wowyousavedhowmuch.com.

I grant permission for every reader to reproduce on your website the article you are now reading but copy this article, without any alteration whatsoever. Include the copyright statement, too, please.

“Copyright © Renita R. Perrone All rights reserved. Permission granted to reprint this article on your website without alteration if you include this copyright statement and leave the hyperlinks live and in place.” www.wowyousavedhowmuch.com 

Advertisements

Responses

  1. This is a good information i got from here.I really liked it and this information is worth remembering and can be saved for the future.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: