Discount tire credit card

Staying out of credit card debt

Ministers rarely fall deep into debt all at once. Instead, their expenses outpace their income little by little until the balance becomes unmanageable. Once that happens, they have to make lifestyle changes to get out from under.

You don't have to be a tightwad to prevent debt overload. Many people have spent every dollar for so long that all of their purchases seem like necessities. Here are a few strategies:

* Identify situations in which you lack financial willpower. Be proactive based on these behavior patterns:

* Catalogs. Fill out order forms for what you want, then put them aside. One week later, allow yourself to send away for whatever you can actually remember, without looking at the forms. You wind up buying only what is important.

* Supermarket impulse buys. Put any items that are not on your shopping list in the shopping cart's child seat. Before checkout, choose just one item from the child seat. If you find a great bargain, take something off your list to accommodate the good deal.

* Long-distance telephone. Cancel unrestricted services if you can't control your calls. Use prepaid phone cards instead. Using a phone card is like using cash, so you tend to be more careful about your phone time. Warehouse discount clubs now sell cards for about four cents per minute (Costco for 4.8 cents and Sam's Club for as little as four cents per minute).

* Pay cash. It may be inconvenient, but it forces you to prioritize. It's the single best way to eliminate impulsive buying. Cash customers spend 30% less on shopping sprees than those who pay with plastic.

* Set up a monthly spending plan.

* Log how much you spend each day for one month. Use one index card per day. Put the date at the top and make two columns: What and How Much. Include everything you spend.

* Create a spending record. Analyze your daily logs and group expenses into categories: groceries, clothing, entertainment, etc. Most people have about 20 categories. Total the amount in each.

* Figure out your income each month, including salary, dividends, interest and other income.

* Subtract monthly expenses from income. Most Americans live on about 110% of their monthly incomes. You're likely to face debt problems if your expenses exceed 80% of your monthly income.

* Analyze the logs to identify problem areas. Create new targets so that expenses won't exceed income.

* Draw up a new log for the second month with expense goals by category. Again, track all expenses. And again, see if you are spending too much and identify places to cut back. Repeat this process until you reach your spending goals.

* Budget for large expenses by setting up a Freedom Account to better prepare for the unexpected or intermittent expenses. To save for these expenses, open a second checking account that pays interest or a money-market account that offers checking.

* Food outside the home. The typical family spends only half its food budget at supermarkets. Restaurants are the single biggest budget killers. The rest is spent at fast-food places, coffee bars, etc.

Eat simpler meals at home - healthful frozen entrees, for example. Cook on the weekends, and freeze meals for midweek.

* Automobile expenses. Ask the tire shop if it has take-offs - new tires that wind up in inventory when a new-car buyer decides to replace his or her tires with special ones. The cost is about 50% less than the original price.

* Track credit card balances. Most credit card companies now provide you with a password to get up-to-date information on their Web sites. Seeing your outstanding balances will help you avoid taking on debt.

* Cancel gas and department store cards. With Visa and MasterCard so universally accepted, only keep other cards if they offer a significant convenience or feature.

* Ask for a reduction in interest. Call the customer service number for each of your credit cards. Call and say: "You're charging me 18.5% interest. I'm seeing a lot of cards advertised with much lower rates and no annual fees. Will you lower my interest rate?"

You have nothing to lose. If you have at least a one year history of timely payments, the answer will probably be "Yes!"

* Check your credit report. There are three major credit bureaus. They all operate nationwide and generally have similar information on you. Go to WWW.myfico.com, where for $12.95, you can get your credit report along with your credit score and suggestions for improving that score.

After your credit report arrives, look for errors. About 40% of the time there are items you should correct right away.