5 Quick and Easy Ways to Free Up Cash to Pay Down Credit Card Debt

5 Quick and Easy Ways to Free Up Cash to Pay Down Credit Card Debt

By David Bakke

NEW YORK (Money Crashers) — Since recovering from more than $30,000 in personal debt, I've never understood why people continue to carry credit card balances. Paying interest on these balances is simply a major waste of money. The average credit card debt per person in the United States is more than $7,000 – and you simply can never become financially secure with such a high lingering credit card balance.

Paying off your balances is key, but it may be difficult to get started if you're tight on money. There are a number of easy ways to free up cash to pay off credit card debts, though:

1. Save on utility bills

By reducing your thermostat by at least three degrees, you can save up to 20% on your home energy bills. Turn off all lights and appliances when they're not in use, take shorter showers and wash only full loads of dishes and dirty clothes to save even more money.

2. Clip coupons

Believe it or not, those who partake in extreme couponing can save upward of 80% per grocery bill. Buy an extra copy or two of the Sunday paper to increase the amount of coupons you can collect. Then use them when your local grocer features a double coupon offer and increase your savings. Be sure to organize your coupons by expiration date to ensure you use them before they expire.

3. Cut back on monthly bills

There are multiple ways to trim your monthly bills. First, examine your cellphone bill, and swap your unlimited plan for an allotment of monthly minutes close to your actual usage. Cut back on your TV bill by reducing your channel package, and eliminate paid movie services. If you like to watch movies, subscribe to an affordable service such as Hulu Plus, Amazon Prime, or Netflix instead. Reduce your Internet connection speed, and consider dropping your home telephone for a service such as MagicJack.