Many people in the USA still suffering from bad credit because of their bad management of debt they owe. Most of them are careless because of their habits of the past of not paying the credit card or other daily expense’s bills on time.  It makes them pretty less eligible for any future lending either from local banks or other online sources available in their state.  Their credit affects their worthiness and so their eligibility to pay previous debt on time and that make them fall into debt trap paying interest over interest.

Interestingly, it takes a great degree of determination and self-control on your part to improve your score. However, below are some practical insights on how to reduce your expenses in order to cut down your appetite for debt.

Think twice before buying extended warranties

Most new (and some refurbished) electronic devices, gadgets, and home appliances are sold with a manufacturer warranty for repairs/replacement if they develop faults within a definite period. However, when you want to purchase a new device, the salesperson will often offer to sweeten the pot for you with a seemingly great offer to extend the lifespan of the warranty.

The problem however is that such extended warranty often increases the commission/bonus for the salesperson without offering you tangible value because the manufacturer’s warranty is often enough. The extended warranty only comes into effect at a time you’ll already be tired of the device because there are newer and better models in the market.

Cancel ‘feel-good’ gym memberships

Many people understand that they need to hit the gym in order exercise and stay healthy. Many folks even go as far as signing up for a gym membership on a monthly, quarterly, or annual plan. Many people buy a gym membership as the first step toward getting in shape. However, many of the folks who buy gym memberships often feel a sense of accomplishment that they are doing something towards getting in shape.

The sense of accomplishment often drowns out the necessity of showing up in the gym and breaking sweat. Hence, practically all gyms nationwide have a long list of absentee members. If you have a gym membership that you are not using, you might want to cancel the membership in order to free up money.

Housecleaning and yard work don’t need to burn a hole in your pocket

Many people spend a holy amount of money on housecleaning services, small home maintenance and yard work. I understand that some people have health challenges that prevent them from physical exertion. I also understand that some folks have very busy schedules and it makes economic sense to pay someone to do the chores. However, if you are healthy and you can spare the time, you can save money doing your yard work and cleaning the house yourself.

You can also find a way to turn household chores into a family activity if you have pre-teens or teenagers. You can have them do the chores to earn extra bonuses on their weekly allowance. Doing housecleaning and yard work can also provide your body an opportunity to exercise on a productive level and you won’t need to pay for gym memberships (see #2 above).

On-demand video is often better than cable or buying movies

Many people have cable TV even when it is obvious that streaming on-demand video has disrupted the TV industry. Many people buy movies (on Blu-ray, DVD, or iTunes/Amazon) in order to ‘own’ copies of their favorite titles. Buying a movie could set you back as much as $20 and renting a movie could set you back some $4 on each title.

However, you can sign up for a video streaming service such as Netflix or Hulu for less than $10 per month to watch your favorite movies and shows across multiple devices at your convenience.  Better still, if you do lots of shopping on Amazon, you can sign up for Amazon Prime so that you can access complementary Prime Video among other perks.