by Roma Lightsey

Created on: November 16, 2011   Last Updated: November 17, 2011

If you’re feeling the pinch in your wallet, you’re not alone. Recent statistics on consumer debt state that the average credit card debt in U.S. households is $15,799. You may be among those included in the consumer debt total of $2.43 trillion-yes, trillion-as of May, 2011. You can trim your debt by using a few methods to reduce your spending.  

According to CNNMoney, you need to know where your money is going. Start by gathering your bills and listing everything you spend money on each month. Utilities, car payments, house payments or rent and the like are monthly occurrences for most of us. Then there’s groceries, gas, entertainment that may fluctuate quite a bit from one month to the next. For these expenses, calculate a reasonable monthly average and add to the total. 

The day-to-day purchases can easily get out of hand. If you get cash from the ATM and can’t remember what you spent it on a few days later, you are probably wasting money on impulse purchases and budget busters that add up over time. The vending machine at work, fancy lattes, buying bread at a convenience store because you forgot it at the grocery store all contribute to the money drain. 

Cable TV is another huge money drain. The days of cheap cable are gone, with many consumers paying almost $200 a month for expanded cable packages and internet. If you are falling behind on your payments or bouncing checks, this is a sign that drastic measures must be taken to save money. Trim down to a minimal package, or at least get rid of channels and services you don’t use.

You can potentially save hundreds of dollars a year by addressing big-ticket items. Compare what you pay for health, auto, and home insurance. Many companies will off a discount if you purchase all your insurance through them. Premiums can vary dramatically from one insurance company to the next. 

If you are planning a move, compare home prices and rents before deciding. This is a huge step not to be taken lightly. If you pick a home with a house payment $150 a month less than another home, but it is several miles from your job, your increased gas expense can easily exceed any savings you might have. 

When considering a new car purchase, don’t shop by monthly payments alone. Hopefully, you won’t be buying a brand-new car which will depreciate a few thousand when you drive it off the lot. Choose the best mileage possible and forgo the loaded-out, leathered-up

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