Those post-holiday bills are starting to roll in right about now, and if you spent too much here’s a strategy for getting your debt under control in 2008.
Tackle your high interest debt first. I’m talking about credit cards with rates in the 19 or 20 per cent range and retail cards that go as high as 30 per cent. Until these are paid off, pay only the minimum on your lower interest rate cards and lines of credit.
Do without something. If you cut out a fancy coffee every day, and lunch out 3 times a week, you can save about $250 a month. Likewise, shutting off the family cellphones for awhile can save hundreds of dollars a month. A ten per cent cut across the board on all your discretionary spending is another option. And if you rein in your spending instead of using other debt to pay off your bills, it’ll be an incentive not to do this again.