Paying Off Credit Card Debt With Tuna Fish

Over 609 million credit cards circulate in the United States and the average American family carries ,788 in credit card debt, according to Federal Reserve Bank of Boston. The national average for interest rates was 14 percent in August 2010. Consumers facing such statistics in their day to day lives can find relief, with a little planning and a lot of tuna fish.

Gather all your credit card statements and your checkbook. Create a spreadsheet or use personal finance software or an abacus if you wish to begin compiling an index of all your expenses and income-don't leave anything out, include every penny spent in the last three to six months.

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Tally all your debt including credit cards, student loans, auto loans, mortgage/rent, utilities, subscriptions, membership dues, any and all expenses should be listed, even the phony dog poo you play practical jokes with. Total your net income and subtract your expenses. If the difference is negative, begin to peruse through your expenses and rank them according to priority. The top priorities should be mortgage/rent, auto loans, food, utilities and the bottom of the list should contain superfluous or discretionary items such as magazine subscriptions and dining out.

Work out a budget that excludes the discretionary expenses and re-tally your income to expense differential. If your expenses still exceed your net income, begin identifying other expenses that can be reduced or eliminated and then move on to an action plan for paying off your credit card debt.

Select the credit card with the lowest balance and pay the minimum due on every other credit card. Use any spare chance you pick up from a parking lot to under the sofa cushion to throw at the lowest balance until it is paid off. Repeat this by focusing on the next higher balance and then cutting up the little plastic devils.

You can free up cash by reworking your grocery list and buying generics instead of name brands and clipping coupons. Buy frugally to fill your belly, tuna fish and Hamburger Helper will do the same trick as steak and potatoes. Also, try to make one trip a month to the grocery store to avoid impulse purchases such as candy bars and beer helmets. In addition, if you have a late model car with a hefty auto loan, inquire about refinancing or see if you can trade down for a smaller monthly payment.

Paying Off Credit Card Debt With Tuna Fish

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