1. Save anything and everything you can. With gas prices these days, driving less will save you a lot of money. Use the fireplace more in the winter and open the windows in the summer. And keep those lights off when you’re not in the room.
2. Stop spending money on unnecessary things. No more shopping sprees. Stop buying new clothes, jewelry, CDs, DVDs, and toys until you’ve eliminated all your debt.
3. No more plastic. The credit card probably put you in the situation you’re in, so don’t use it. My favorite trick is to freeze them in a block of ice. By the time it thaws, your compulsive thinking should have cooled down.
4. Communication expenses. If you have a cell phone, do you need a landline? Try to make most of your calls after 9:00 pm, when it’s free. Are you also paying for another family member’s cell service that may not be needed? Can you live without the internet? If not, do you have to have the fastest and most expensive connection?
5. Less travel and cheaper entertainment. You don’t have to be part of the trip of the month club. You can probably think of more practical things to do than go to the beach or the bar all the time.
6. Spend less on food. I know it can be hard, but try not to eat out as much. People don’t realize how much they spend eating out every day. $10-15 a day may not seem like much at the time, but over the month it adds up. Eat more at home, it’s also healthier. Oh and yes, try buying generic brands and lay of the t-bone steaks. Drink more water and less soda.
7. Earn as much money as you can. Work overtime, get a part-time job, and sell some stuff you don’t need. Staying busy will help with your temptation to spend, spend, spend.
8. Pay the card with the highest rate first. Interest rates are crazy these days. Make the minimum payments on the cards with the lowest rate and take as much extra money as you can to pay for the card with the highest rate. After that, work your way down until everyone is paid.
9. Compare insurance prices. Imagine if you could save a little on your home, life, business, and auto insurance. It would add up to more free cash to reduce your debt.
10. Debt consolidation can also help. By consolidating all of your debt into one large payment, you can get a discount on interest and actually lower your debt payments.