If you’re among the roughly 157 million Americans struggling to pull yourself out of debt, you might feel like you’ve slipped into an impossibly deep pit. Fortunately, no pit is too deep to climb back out of, although it might mean a slight shift in gears. Part of that shift may mean changing where and how you shop – but with the right tools, you might even be able to spend your way out of debt.
Where and how you shop can make a difference in how quickly you get out of debt because the money you spend can pay you back dividends depending on how and where you spend it. Save big on items and services you already use by purchasing gift cards, using discount sites, and getting sign-on bonuses and cash back through store cards. This is YOUR guide to spending your way out of debt smartly.
Keep Reading for Tips on How to Spend Your Way Out of Debt.
Buy Gift Cards
A great way to save on items or services you know you’ll need is by purchasing gift cards – for yourself. Spend pennies on the dollar on everyday items by snagging discounted cards on eBay and Gift Card Mall. You can also save hundreds on entertainment by checking out the daily gift card deals at Restaurants.com. You can’t completely give up dining out or seeing the occasional movie, but you can painlessly slash your budget by using gift cards.
Use Discount Sites
Another smart way to save on both everyday items and extras is to buy through discount sites. For example, Groupon and LivingSocial can get you amazing rates on everything from dining and entertainment to pet services, electronics, and even clothes and shoes. Ebates gets you cash back at many of your favorite retailers, offers a $10 sign-up bonus, and gives you the option to sign in through Facebook and Google.
Cash Back and Sign-Up Bonuses
Some retailers offer incentives for getting store cards through them. For example, Amazon will credit you a “welcome” gift card (amount varies) after approval for a Prime Rewards Visa Signature Card. Amazon will also give you five percent cash back when you use your card at Amazon.com and Whole Foods Market purchases. Buying gas or using your card at restaurants and drugstores will earn you two percent back, and you’ll earn one percent on everything else.
Walmart will give you $25 just for obtaining a Walmart credit card and charging $25 on it. You can get three percent cash back on all Walmart.com purchases, as well as two percent at participating gas stations and one percent on all other purchases. Remember to be sparing about the cards you do get, as new credit cards can initially reduce your credit rating. Also, make sure you don’t spend more than you can easily pay off each month.
Use smart spending strategies to stretch your dollars, and look forward to paying off your debt faster. While you’ll still need to be careful about your expenses, you can feel better about what you do buy with prepaid savings and cash back buffering the blow. Choose your sales wisely, and you can spend your way out of debt.
~Here’s to Your Success