The decision to consolidate your credit card debt is an important one. However, you won’t get far if you don’t control your spending and you keep racking up new debt while you’re paying down the old debt. Here are some tips to help you get your spending under control for good.
Tips to Help You Control Spending
- Don't carry too much cash. The more you have in your wallet, the easier it is to let it slip through your fingers. Carry only what you are likely to need for the essentials.
- Only carry one credit card for emergencies. If you don't have the plastic, you’ll be able to avoid impulse buying binges that you’ll regret later.
- Always, always make a grocery list of what you need and stick to it. Don't buy any extras.
- Any time you are considering buying anything that costs more than a set amount (for instance, $50), make a rule that you will wait 24 hours before you make that particular purchase. If you go home and think it over, often you’ll decide you don't really need it.
- As soon as you get your paycheck, take some money out of it, put it in a savings account and don't touch it. It’s not for extra spending or for "little unexpected things." Pretend this money doesn't exist. In a year's time, you won’t believe how much you've saved.
- Develop a budget for everything and stick to it.
- Look at all of your discretionary spending (dining out, movies, etc.) and try to cut it in half, bit by bit. Rent movies instead of going to the theater. Go to family style restaurants or dine at home instead of eating at expensive restaurants. It’s easier to control spending and change your lifestyle in small steps.
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