Swimming in Debts? This Couple Managed to Pay a Chunk of Their Credit Card Debt Because of These Smart Lifestyle Changes
What’s the biggest drawback of using a credit card? You can’t monitor your spending habits. Because you’re basically paying cashless, you don’t feel the brunt of charging huge amounts on these tiny pieces of plastic. It is easy to fall into the trap of shopping as taking home the products you have been eyeing is as easy as swiping. However, you don’t realize just how this becomes a habit until you see the bill.
Incurring $30,000 in Debt
Things get worse when you can’t settle monthly dues in full, leaving behind balances that accumulate through time. Plus, these tiny purchases’ interest may seem low in hindsight but add them all and they balloon on top of your bill. Business Insider’s Ashley Abramson recounted the moment she and her husband incurred a debt of $30,000 in three years because of mindless spending using their credit cards.
After a chronic illness stopped her from freelancing, they resorted to credit cards. This resulted in over $1,000 in payments each month – quite a sum that’s burdensome for them although they make it a point to make a lot of sacrifices to fix the mess. However, the couple has recently paid $10,000 of their debts in just three months, bringing down the total amount to just $20,000. Here’s how they did it:
It can be a hassle to commute, especially when you’re running late, but it’s one of the sacrifices you’re going to have to make to lessen the expenses. The couple just lives with one car, which is not easy for them because their residence is in a suburban area. You might think that a car is better than none at all but for the pair, their location was a big hindrance because it’s not walkable to their workplace.
The writer’s husband walks for a mile to a park-and-ride stop and hops on a bus to his work. That’s not only saving gas, but it also promotes exercise along the way. Although it entails a lot of work, the couple tries, as much as possible, to align their schedules and make it a point that one stays with their two kids at home when one is out. Speaking of their children, the eldest also takes the bus, so pick-ups are not that complicated.
They pay $350 per month for the van, $50 for the insurance, and $200 for gas. Ashley estimated their savings to about $600 to $700 a month that can go to the payment for the credit card debt.
Being a freelancer, money doesn’t come regularly, especially when you’re dealing with different clients. So for Ashley, the family had been living off her husband’s income that arrives on time. Once her payments are deposited, these go straight to their credit card debts.
But this wasn’t easy at all for the family who admittedly was used to living a lifestyle they can’t afford. Because of their strategy, dining out, buying more than what is needed, and unexpected trips had to take a backseat for now.
More in Pocket Change
Coronavirus and Retirement: Mistakes to Avoid with Your 401(k)
Anyone who got accustomed to viewing his 401(k) account balance move higher for a considerable length of time, the market’s ongoing...April 29, 2020
This L.A. Abode Was HGTV Star Leanne Ford’s ‘Forever Home’ Until She Realized Something Life-Changing
When HGTV star Leanne Ford decided to take on this renovation project of a house located in Rustic Canyon in...April 29, 2020
List of Wealthiest Charitable Foundations and Their Area of Focus
Here are some of the wealthiest foundations which are listed according to their net assets. Bill and Melinda Gates Foundation The...April 27, 2020
A 3 Minute Read for Students who are Thinking about Launching Their Careers During the Outbreak
Usually, graduates who receive their diplomas and degrees always have new jobs available for them in the job market and are...April 23, 2020
The Career Woman’s Guide to Managing Stress
It’s not easy keeping a balance between striving for professional success and maintaining a happy personal life. With all the things...April 22, 2020
New McLaren Sports Series Hybrid Seen in Production Bodywork
Although the camouflage is quite heavy, one can clearly see that the new McLaren prototype is going to follow the tract...April 22, 2020
A Noob’s Duide to Investing in a Bear Market
If you looked closely at the stock movements these days, there is a question that you might ask. The bear market...April 21, 2020
Want to Save More During the Crisis? These Are the Expenses You Should Give up ASAP
Due to the aftermath of the coronavirus pandemic, the economy has reportedly gone into a recession. That, paired with the sudden...April 21, 2020
Is The CARES Act Making Everyone Happy? Here’s What Many Have to Say
Almost 3 million people who own their own houses have benefitted from a program that has been designed to provide assistance...April 21, 2020