5 Things You Can't Afford If You Have Credit Card Debt

We've all been told to avoid credit card debt, yet many people seem unable or unwilling to heed this advice. While there are some expenses that are unavoidable, there are still many who fritter away their money on things they don't need. If you find yourself in credit card debt, here are five things you can most definitely do without!

Marlboros & Coronas

Spending money on cigarettes is just like flushing your money down the toilet, except that the latter would better for you. If you're in a tight spot financially, it's the perfect time to quit smoking. Get some nicotine patches or go cold turkey! There is plenty of help available and your wallet will thank you for it later on, not to mention your lungs.

Drinking on a regular basis is almost as bad. Let's say you have a few drinks once a week - that could add up to $100 a month which you could have put towards your credit card debt. Every dollar you spend on luxuries is costing you in interest since you have less money to put towards your card.

Foxtel

This is one of the biggest money spinners of the lot. While the cost of cable TV has come down a little in the last few years, some companies still charge over $90 a month for certain packages. If you're not locked into a contract, cancel your subscription for good.

Louis Vuitton

Retail therapy is, in fact, not therapy at all when you have a huge credit card debt to pay off. Don't even go to the shops unless you need milk and bread. When you do the weekly grocery shop, make a list of the essentials you need before you even leave the house. Then stick to your list!

Starbucks

It's easy to rack up charges on the plastic at coffee shops, fast food outlets and restaurants. Learn to cook, make your own coffee at home or better still, give it up entirely! Just one coffee a day bought from a boutique coffee shop will cost you around $1,500 a year. Imagine the dent that would put on your credit card bill.

Landline Telephone

Line rental is around $35 a month, so unless you're making a ton of local calls you're better off just using your mobile phone cap. Even if it means upgrading your cap to a higher plan, you'll likely still save a couple hundred a year in line rental charges.

Getting your credit card balance down may not be an easy quest, but examining your bill and taking action to cut out non-essential purchases is a great first step on the road to achieving freedom from debt.

How do I compare credit cards?

RateCity is the best website to shop around on for all credit cards, as well as most other financial products. At RateCity, you can use expert comparative data from CANSTAR CANNEX, Australia's leading financial research and ratings firm. CANSTAR CANNEX has analysed and evaluated hundreds of financial products to award five stars to only the very best. The CANSTAR CANNEX star ratings go much further than just looking at interest rates. They also take into account important features so you can be confident you are getting the best product.

Use our easy search tools to compare credit cards at RateCity.

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