Turbo Tax

Monday, February 1, 2010

Tuesday's Tips - How to Get Out of Debt, Step 1

I'm going to be talking about how to get out of debt in my tips for the next several weeks.

What's the very first step to get out of debt?  You must stop adding to the debt.  If you don't have the money to pay cash for something, you can't buy it.  This means that from now on, you don't use credit cards for anything!  Use cash for your day to day purchases.

Dunn & Bradstreet did a study showing an average consumer will spend 12-18%  more when using plastic as opposed to cash.  When $50 leaves your hand it hurts!  When $50, make that $56 to go with the D&B report, is put on your credit card it doesn't barely register.  By the the time you receive your bill, the pain is numbed from the elapsed time.  Even debit cards don't sting quite as bad, but since you must have money there first, it's a little bit better.  That same D&B report showed an average McDonalds transaction went form $4.50 - $7 when people used plastic instead of cash.  These are reasons to get rid of the credit cards. Yes, I know, there are the rewards the credit card company gives you for using your card, but the company wouldn't give those rewards if they weren't profitable.  Don't give them the chance to lure you into their trap.  Just say no!

Have you gotten rid of your credit cards?  Did you know that your debit card gives you the same protection as a credit card?  Are you ready to get rid of debt?  You CAN do this!!!

This post is linked to Works for Me Wednesday.

Do you have a blog and a tip to share with others?  Link up below!  Please make sure it leads directly to your post and not to the front page of your blog.  Thanks!


Together We Save said...

You are very wise and I think speaking straight to me. I am trying...and making progress everyday.

Lori @ Couponomic Stimulus Package said...

Together We Save, thank you so much for your kind words! Great job with making progress! You can do it!

Anonymous said...

Good advice! Freedom from debt is awesome! (Hate to point this out, but you need to delete the word "going" in your second paragraph.)

Lori @ Couponomic Stimulus Package said...

Thanks for pointing out the extra word anonymous! There are times when it doesn't matter how many times I read through it I just don't see the mistakes!!!

Deb S. said...

Great post! Great blog! I just found you through WFMW. All my fave bloggers seem to let their blogs go once they reach their goals, while I am happy for them, I miss the encouragement. SO, I'm so glad to find you and I will be following you! Thanks for encouraging us all!

mack said...

Getting rid of debt is something that many of us sincerely don’t endeavor to achieve. According to me once we get motivated to pay up our debt, there’s nothing that can come in your way. On the other hand adequate financial resources is also very important. To get more info on this refer Tips to get rid of debt

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