Paying above the minimum rate on your credit card is essential. We all know that. But we have a finite amount of income, so sometimes finding extra sources of money can seem difficult. Here are ten extra sources of money to pay off your credit card.
One Meal Out A Week
I’m not saying never head out for a meal. I’ve never trusted all or nothing rhetoric when it comes to finances- or anything for that matter. But try and cook at home one extra night a week, and put the difference into your credit card repayments. Saving: $110 a month (The cost of a main – the cost of ingredients to cook at home)
If you go most days, then fine. If not, lose the membership and just walk a couple of kilometres a day. Or join a couple of free exercise or bushwalking groups. Saving: $70 a month.
I honestly think I paid off at least ten percent of my credit card by organising packed lunches, not a word of a lie. At a conservative estimate, you save on a bought sandwich. In reality, in all likelihood, you would be saving on a salad, a juice, perhaps a mid-afternoon snack. I cook big batches of eggplant parmigiana and have that on sandwiches, or tuna wraps. Saving: $110 a month (4 sandwiches a week at $5 each)
Head to the library and rent a couple of DVDs from there. Or do a ten-DVD swap with your next door neighbour. Saving: $30 a month (one overnight rental per week)
Lose The Landline
If you have a mobile, then the extra cost of a landline is often unnecessary. Either switch to VOIP, which can act as a landline, or lose the cost altogether. Saving: $30 per month.
Shop In A Hurry
Grocery shopping can become expensive when we’ve got all the time in the world. I meander through, checking out this and that, adding extras to the trolley. Impulse buys are far less possible if we have a list and only a certain amount of time to do the shop. Head up in the hour between finishing work and dinner, or give yourself an hour and a half to do the shopping, come home and head out again. Saving: $50- 100 a month.
Turn The Thermostat Down
Or, as we approach the warmer months, turn it up. One degree either way saves around 5% off your bill every month. Saving: $5-20 a month.
Change Your Hobby
I used to drink at the pub as a hobby. These days, we go for bushwalks or spend time gardening. And if that sounds boring, think of other options: start a band, do a free online course, get into stencilling. Upfront costs aside, the amount of time you invest in your hobby can save you significant money. Saving: (Depending on how much you can put away) $200 a month.
Organise Your Wardrobe
Eliminate the days of buying one item, then having to buy an entire new wardrobe to match it. Organise your wardrobe and buy clothes that work with most of it. Saving: $100 a month (if you’re anything like me, that’s a conservative estimate).
Get Everything In On Time
Late fees can cost us a significant amount, often without us noticing. Organise to return things a day early if you struggle with getting things back on time. Saving: $20 a month (a couple of late video rentals, though the costs can be far higher).
If you can do five of these, you’re looking at paying an extra $250 a month to put towards your credit card. On an average Australian credit card (we owe around $4,920 each and pay around 15- 20% interest), you would save $12,364 in interest.