Like many people, I too am in debt. However in the span of about 13 months my debt was reduced by about $10,000 . It wasn't easy, but even though my income stayed the same it was possible. Here are the various ways that I saved money and reduced my debt.
One of the the big things is to deal shop. When deal shopping (in stores and online) it's important to have an idea of what the normal price of something is and the average sale price. The reason for this is that some stores have higher starting prices or will actually raise their price before putting it on sale, so it's the same or higher than the original price. Then if one has time then in addition to buying items on sale, using coupons & submitting rebates is a great way to save money (you can find deals on Couponing In PA and The Frugal Tattooed Lady).
While it may not seem like much, one thing that can really rack up the debt or reduce how quickly debt is paid off is by going out to eat or to sporting events or doing other activities. So if you want to do something that would cost full price then instead do some investigating to see what other offers there are for similar things that are close to you. By doing that you will save money and could even possibly do 2 things for just the cost of 1.
Another thing that could help you to save money is by changing car insurance. For many of years I didn't get a new quote, but the insurance company that am with called and asked if could provide quotes (they represent many different companies). It turned out that there was an insurance company that could save me about 50% & still provided the same coverage. Calling the different companies can be time consuming, so you may want to consider finding an agency that represents various companies so that they will do all the leg work for you.
Something that may not work for everybody, but is a great way to earn extra money for purchases & bill payments is by using credit cards whenever possible. Some people say they spent more if they use plastic instead of cash, but for me the reverse is true because having cash increases the odds wasting money on lottery and/or losing it increases. Some also people say by using credit cards then one is paying interest but wouldn't when pay with cash, but the thing is that if one is already in debt then the same amount of interest will be paid if use credit cards or if use cash, because if use credit cards then can use the cash that you didn't use to make a bigger payment. However credit cards usually offer rewards back, where as there are no rewards for paying with cash.
The amount earned isn't a huge amount, but every penny really does make a difference. Just remember not to buy something just because you have credit available, but rather because it's something you would buy even if used cash. If you have multiple cards then it's a good idea to go through & see how much is earned on purchases and also how much the rewards cost (if a point system).Sometimes it is the best bet to get gift cards, but usually it seems to be better to get cash. Then by getting cash you can pay extra on your credit card & in turn use that money (on the card) to make another purchase & earn more rewards.
Another option that may not be available to everybody is taking advantage of zero (or low) interest on balance transfers. Sometimes offers are given on pre-existing cards, but there are frequently offers when apply for new cards to get 0% interest for a year or longer. There is usually a 3% finance charge (minimum of $5), but generally that finance charge is going to be less than what the interest would be over a year (or more).
Finally planning out finances 3-6 months can be a great way to reduce debt quicker. Doing so can help aid in making bigger payments on credit cards as early as possible, without risking paying too much & not having enough to pay the other bills. To decide which card to pay extra it's best to go through & find out what the interest rate is on each credit card and/or loan you have & how much is owed. Then work on paying extra on whatever card has the highest rate. Or if you have any cards with under $500 owed then it can be nice to just pay that card so that it's one less payment to make each month. It may not make a difference, but in order to make sure that there is never a late payment and as much extra is paid before each statement date is to make 2 or 3 payments each month - 1 as soon as the statement is released & then the others whenever have the extra money.
Hopefully some of these methods will help you reduce your debt as well.
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