10 Thrifty Ways to Get Out of Debt (Part 1)

Attempting to lead a thrifty lifestyle does not have to be a dramatic change, nor drive you to the border of insanity; a few smart sacrifices here and there will go a long way and help you get out of debt. According to the New York Times, American consumer spending rose 0.7 percent in February after a 0.3 percent increase in January. Families from across the United States are faced with higher cost of food, living and energy. As daunting as that sounds, there are ways to beat the statistics. Here are 10 thrifty ways to get out of debt.

Eliminate Daily Luxuries

Casual dining with your friends, personal-care services and getting your daily coffee fix are considered small luxuries. In December of 2010, more than 5,000 adult consumers participated in a survey conducted by the National Retail Federation, or N.R.F. Thirty two percent of those surveyed said casual dining was a necessity, in addition to 42 percent of surveyors requiring personal hair maintenance. For the caffeine-driven worker, you could easily spend anywhere between $960 to nearly $2,000; under the assumption that you spend on average $4 per day, five days a week for a year on lattes.

These daily, or even weekly, luxuries can really put a serious dent in your wallet. Try cooking at home with your friends, doing each other’s nails and brewing your own coffee. These money-saving tactics can easily be done, save you thousands of dollars and help you get out of debt faster.
The Art of Extreme Couponing

Couponing is so cool that it is even getting its own show on The Learning Channel, or better known as TLC. If I told you that you could save more than 90 percent on your grocery bills, would you believe me? Evidently, it can be done and the secret to that are coupons.

Simple ways to get started in couponing is by subscribing to several weekend newspapers (hopefully inexpensive with good-quality ads) and surfing the web for printable coupons. Stay insanely organized, keep track of the expiration dates and check to see if there are some coupons you can use in tandem with another. Websites like plasticjungle.com offers discounted gift cards—up to 30 percent—to various restaurant chains and stores. Using coupons for your every day purchases will add up so quickly that you will be surprised at how much money you have saved.
10 Percent of Your Income Goes to…

Remember Friends, the episode with the prom video? No? Let me refresh your memory.

Judy Geller: You were fired? What’re you going to do?
Jack Geller: Judy, Judy, relax, this is our little Harmonica we’re talking about. We taught her well. Ten percent of your paycheck, where does it go?
Monica and Ross: In the bank.
Jack Geller: There you go. So she dips into her savings, that’s what it’s there for. She’s going to be fine, and if you need a little extra, you know where to find it.
Monica: Anything larger back there?

According to the financial rule of thumb and wise old, Jack Geller, it is best to save at least 10 percent of your after-tax income. After a good few months of practicing this, it will become second-nature to you. Once you get the ball rolling, explore savings alternatives, e.g. college savings, an IRA or other savings account. Especially considering the worst-case scenario, like Monica losing her job, having an emergency fund readily available will help avoid further credit card debt.
Create a Food Budget

A recent survey conducted by the U.S. Dept. of Labor revealed that the average consumer spends roughly $3,500 annually on grocery. Next to housing and transportation, food consumption is probably the third-largest expenditure.

Plan your meals ahead of time and create a food budget to avoid wasteful shopping—saving you time, money and energy. On top of that, cut out junk food and sugar; it will be better for your pocket and waistline. To take it even further, combine this strategy with extreme couponing; it is pretty much a win-win situation.
Opt for Store Brand Names?

Buying brand name products from a renowned and reputable company gives us assurance. Though, the extra security comes with an extra price tag. How do you know when to stick with your usual brand names or when to opt for store brands at a significantly lesser price? After all, when you are drowning in debt, every penny counts, so knowing what to buy is critical.

Lifestyle expert, Robyn Moreno, dished out on “The Early Show,” televised on CBS, what to buy and when to go for store brands. Generic pain relievers, for example, can safely be bought because it still has to undergo the same FDA approval process as its name brand equivalent. The reason why name brands cost more is because these companies spend extra time with research, development and advertisement. So to all you debt-ridden consumers out there, opting for some store brand names can offer a small sense of debt relief.

If you are still struggling to get out of debt, then seeking professional assistance can help. Fill out the online form on the right, and a debt advisor will contact you shortly to discuss your options. Stick around for 10 Thrifty Ways to Get Out of Debt (Part 2).