How to pay off a $1,000 credit card balance in one year
Realizing what you spend and how you can easily change a few habits is the easiest way to bring more money back into your pocket. That's badly needed cash that can be directly applied to your debts and help you be out of debt.
Paying off a $1,000 credit card balance in one year will save you about $200 per year interest or about $4,600 over the life of the loan.
The Soda Test
1 can of soda = $.65
1 can of soda per day x 5 days per week = $3.25
1 can of soda per day x 5 days per week x 50 weeks of work per year = $162.50
TOTAL SODA SAVINGS: $162.50
The Doughnut and Morning Coffee Test
1 Cup of Coffee = $1.10
1 Doughnut = $.80
1 cup of coffee per day x 5 days per week = $5.50
1 cup of coffee per day x 5 days per week x 50 weeks of work per year = $275.00
1 doughnut per day x 5 days per week = $4.00
1 doughnut per day x 5 days per week x 50 weeks of work per year = $200.00
TOTAL DOUGHNUT AND MORNING COFFEE SAVINGS: $475.00
The Video Rental Test
1 Video rental late fee = $2.00
1 Late fee every week x 4 weeks per month = $8.00
1 Late fee every week x 4 weeks per month x 12 months per year = $96.00
TOTAL VIDEO RENTAL SAVINGS: $96.00
The Call at the Wrong Time Test
1 ten minute phone call during peak time = $3.00 extra
1 ten minute phone call every two weeks x 2 two week periods per month = $6.00
1 ten minute phone call every two weeks x 2 two week periods per month x 12 months = $72.00
TOTAL PHONE CALL SAVINGS: $72.00
1 Take-Out dinner per week = $18.00
1 Take-Out dinner per week x 1 week = $18.00
(gotta enjoy yourself some times!!!)
1 dinner per week x 1 week per month x 12 months = $216.00
TOTAL TAKE-OUT DINNER SAVINGS = $216.00
TOTAL ANNUAL SAVINGS: $1021.50
