Credit Basics
How to save $500, $1,000, or $2,500 this year
from
Cosmopolitan
May 2000
Twelve months from now, want to be cavorting on a cruise ship or lounging in a new
loveseat? If you lack the cash, read on for the savvy, no-scrimping required strategies.
If you're ready to ditch your futon
for a king-size bed but your finances won't cooperate, Cosmo's found the way to
change that. Follow just one of our cash-savvy tips below and we guarantee that
by May 1, 2001, you'll have saved $500, $1,000, or even $2,500-all of which can
turn a pipe-dream purchase into rock-solid reality. Skeptical? Don't worry, we're
not going to ask you to eat bologna sandwiches or ditch your favorite fancy moisturizer
for olive oil. "People think pinching pennies is painful, but there are tons of
ways to save money that don't cramp your lifestyle," says Corey Sandler, author
of Secrets of the Savvy Consumer (Prentice Hall, 1998). So here are ten dollar-wise
tactics so subtle you won't even feel the squeeze.
Freeze Your Credit Card
That tiny piece of plastic in your wallet
can get you in a ton of trouble. You may think it's enough to pay off your minimum
balance every month, but at that rate, 70 to 75 percent of your payment is going
exclusively toward interest, says Howard Dvorkin, president of Consolidated Credit
Counseling Services, a nonprofit organization that helps people get out of debt
(www.consolidatedcredit.org). That means that on a $1,000 balance, you throw $700
to $750 down thedrain. To cease this vicious cycle, keep your cards at home, frozen
inside a mega ice cube in a plastic bag. That way, it has to melt before you use
them again, which allows you time to think twice about that must-have 60th pair
of shoes. Instead, use cash (or your debit card) to pay for everything.
