This is part of an ongoing series about how to trim the budget of the average American. As this series focuses on such broad-based tips, some will work for you and some will not. You’re invited to mention in the comments the tips that you found to be the most useful for inclusion in a comprehensive budget trimming guide at the conclusion of this series.
Miscellaneous – $808
“Miscellaneous” seems like a vague category at first, but when I actually dug into the items included in that chunk, I quickly found that one big element makes up most of what falls under “Miscellaneous.”
Finance charges.
Every dime in interest paid on credit cards or consumer loans (besides mortgages and auto loans) falls directly under the “Miscellaneous” category. The number is completely reasonable, too, when you think about the fact that the average American family carries about $8,000 in credit card debt. If they’re paying 10% on that debt, there’s $800 a year.
Obviously, the big solution for cutting this section of your budget is to cut your credit card debt. Here are some steps for doing just that.
Cut up your cards – now. Learn how to live without them. If you like the convenience of using a card, switch to using your debit card but sign for everything – don’t actually use it with your PIN, as you have more protection against fraud if you sign.
Call your credit card companies and ask for a rate reduction. Flip over your card, call the number on the back, and play a little hardball. Here’s my detailed guide for doing this.
Set …