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Change Your Spending Habits to Get Out of Debt

Every year during the holiday season, millions of Americans rack up a significant amount of credit card debt.

If you’re looking to cut down on your credit card debt, the best possible way to do so is by changing your spending habits.

One of the biggest ways that consumers can end up facing a large amount of credit card debt isn’t by using the card to make sizeable purchases every once in a while, but rather by using these accounts to make smaller, everyday purchases.

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It may not seem like a big deal to spend $4 on a cup of coffee every morning using your card, drop $10 on lunch and pay $20 for gas a few times a week, but over the course of a month, those small transactions can add up to a very big bill, one that can be difficult to pay off.

Instead, you may want to consider switching up your payment habits, by using cash or debit whenever possible and avoiding the higher cost associated with the eventual credit card debt you may run into.

A good rule of thumb for dealing with these purchases is that if you couldn’t afford it by paying with cash or debit, it might be a good idea to avoid financing it with a credit card.

Another smart way to dig your way out of credit card debt is to formulate a savings plan. If you take the $4 you spend on coffee and $10 you spend on lunch every work day and start making them at home or get free coffee from the office pot, you might be able to save as much as a few hundred dollars per month.

You would then be able to put that money toward your outstanding credit card debt and more quickly reduce the amount you owe to your lender.

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Any time you’re dealing with your credit card bills, it’s a good idea to pay more than the minimum required by your lender, as this will more quickly cut into the amount you owe.

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