Pay Off Credit Card Debts

I feel good and relieved. This is the first time I have extra cash in hand that can be saved as emergency funds or personal saving. I have God to thank for the debt repayment plan that was recently approved by a credit management agency.

The credit management agency provides you a professional credit counselor to give free credit counseling service and free debt management program information. The credit counselor negotiates with your creditors to lower your monthly payments and reduce your interest rate charges for free. And then the debt counselor will restructure your credit card debt into a debt repayment plan.

Although I can heave a relief because of low monthly payment of $93 (RM320) and having extra cash in hand, there is a need for me to save even more money. Money saved as emergency funds or personal saving can be used to pay off credit card that carries the smallest amount at one go.

Here are a few areas that hubby and I can save money from:

1. Petrol Expenses. Hubby was able to cut down the petrol expenses from $120 to less than $60 a month earlier. But with recent low oil prices, hubby is confident that the petrol expenses will be less than $40 per month.

Hubby was recently given a tip on how to get more petrol than he pays. But we are not sure if this tip really saves you money on petrol expenses.

The tip is, you should use the pumps furthest from the petrol station if you want to save some money on petrol expenses.

The logic is that some petrol-station pumps in the forecourt could dispense a little less petrol than you pay for, whilst others a little more. The petrol station could ensure that it’s the pumps closet to the shop that leave you slightly short, because when the forecourt is empty people will normally go to those pumps.

Another tip that is commonly accepted is that if you fill you car with petrol at the coldest time of the day, you get more petrol. You see, a pump dispenses a volume of liquid. Liquids expand on heating so you get more petrol at the coldest time of the day.

Another way of cutting down petrol expenses is riding a motorbike. Hubby only drives when he needs to go to the town which is a half an hour’s drive.

2. Electricity Bills. To save money on electricity bills, there is a need to cut down on electricity usage and thus reduce the electricity expenses from $37 per month to less than $30.

3. Food Expenses. Since hubby and I moved back to his small village, we have been able to cut down our meal expenses to less than $10 (RM34) for 3 meals a day.

With recent credit crunch and looming recession, I think it’s wise to save more money as emergency funds and personal saving to be used in future to pay off my credit card debt fast.

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