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Less Spending
Paying with cash is painful in that we don't like to see cash leave our hand so when we use cash versus anything else (check, debit, or the dreaded credit card), we will nearly always spend less. Did you know there are studies out that show when you pay with plastic, you spend an average of 12% to 18% more than when cash is used? So even if you use credit cards for everything and then pay it off at the end of the month, you are still spending more than if you had used cash. Try using cash for certain budget items this month and see if you spend less!
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Pay Off Your Credit Cards
If your minimum payment is dollars and cents, round up your payment amount. For example, if your payment is $20.25 per month, then pay $21. That extra change will add up fast and will help you to get out of debt quicker.
Claudia
Credit Card Rewards Cards
I use the reward credit cards to save money for things we would not do normally or for really special family outings. Over the past three years, I have saved $2,000 in reward money, just by using the credit cards that offer them. You must check the fine print and do so all the time, as the companies have now really started limiting the rewards. For example, Discover used to offer 5% back on gasoline purchases per year, up to $1,200 in purchases (so $60 in reward money). Now it's up to $100 per month only (or $5 in reward money). Granted they still offer up to 1% on the rest of your purchases, but with other cards out there, it's easy to find a better deal.
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Cash Back Credit Cards
I have a cash-back Visa. 1% is applied toward my mortgage and it's great, but I found myself justifying expenditures that I didn't truly need, and when the Visa bill came, it was a tough month! After all, I wanted to pay off the balance completely so I didn't incur interest, right? Well, I decided to enter my Visa cash-back purchases into my checkbook like I would any other debit or check, but I use red ink and subtract the purchase from my balance so I can see the cash flow. When the Visa bill comes, I simply re-add the red entries and then write the check to Visa and there's no impact on my true cash-on-hand.
R.Steele
Use Credit Union Credit Cards
I save money on my banking by dealing only with credit unions, never banks. Credit unions are member owned, and although you usually have to be a member of some "group" to belong, the group may be as broad as residing in a certain county. I belong to several credit unions and never pay any fees for services of any kind, the service is always exceptional, and I have never had a problem or a dispute with the credit union or its credit card carrier.
Linda
Ask Your Credit Card Company for a Lower Rate
Contacted my credit card company and asked if a lower interest rate is available. They reviewed our account and gave us a 3% lower rate! I then called my second credit card company and was able to upgrade our card (of course choosing not to increase the spending limit) and the new rate was 3% lower for that also.
Ann
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