How E-Cigarettes Can Help With Your Credit Card Debt
- 15 Mar
- SMOKO E-Cigarettes
If you are like the millions of households in the UK, you may have some form of credit card debt. On average we each have £2,688 unpaid debt on credit cards, and for many of us that can be difficult or almost impossible to get rid of.
However, if you're a smoker, what if we told you there's a way to get healthier and to help with that debt? We're not talking about running far away as fast as possible. It might be great cardio but probably won't help much. We are talking about making the switch to E-Cigarettes.
By switching from cigarettes to E-Cigarettes you not only move to a product that is at least 95% less harmful than cigarettes, you could save yourself almost £3000 a year!
The Trap of Credit Card Debt
Credit cards can be a great tool in your financial planning, enabling you to break down larger payments into smaller more manageable chunks and giving you more ability to plan ahead.
One of the nifty credit card repayment options available is minimum payments. A typical plan is paying 1% plus interest or £5 – whichever is higher. And this is the trap we can all fall into. By paying the minimum payment on your debt you are essentially keeping the debt almost exactly the same and pushing the problem down the road.
Just paying the minimum payment you fall into an almost endless cycle of debt and interest. This happens because when you pay 1% of the payment each month, the amount you owe starts to go down. This sounds great but as the amount you owe shrinks, so does the minimum amount you have to pay.
As you start paying less, the longer it takes to pay of the original debt. Of course, each month you are paying the interest as well.
This is perfect for the credit card company, as they make all their money from the interest!
Money Saving Expert has a great section on this, they worked out that if you had a debt of £3000 with a 17.9% interest rate (which is pretty standard) it would take you 27 years to pay off with minimum payments! And even worse you would not only pay the debt back but you will also pay around £4000 in interest.
The solution to the trap of minimum payments is simple, make sure that you pay back as much as you can each month so you are not stuck with all the extra interest.
But just because the solution is simple doesn’t make it easy, or even possible for many. For thousands of people there simply isn't any extra money to be spent on debt by the end of the month
How Smoking Makes This Worse
How does smoking come into this you wonder?
Smoking is one of those costs that as it comes in small increments, we don't really think about the cumulative costs. But when you look at how much it costs per year, it can be shocking.
Let’s say that you smoke 20 cigarettes a day, at an average of £10 for a pack of 20 cigarettes you would be spending £70 a week.
That means over a month you spend £280, and over a year you will spend £3360! But remember these are based on average prices, so if you smoke more or you go for a more expensive brand those annual costs will be larger.
The cost of cigarettes per year are a huge drain on your income, and with the price of cigarettes always rising this is only going to get more expensive.
If you were able to harness that money and use it against your credit card debt, it would be a game-changer. Instead of paying the minimum payments you could pay that credit card off in no time at all!
However, if quitting smoking was easy, we would all have done it years ago, rather than listen to people constantly tell us how bad it is for us and spend thousands of pounds on an addiction that will probably kill us.
That's where E-Cigarettes come in.
How E-Cigarettes Can Help
Putting aside the fact that e-cigarettes are 95% less harmful than cigarettes, don't produce 2nd hand smoke and don't contain the 4000 chemicals and 50 know carcinogens in cigarettes, E-Cigarettes are MUCH cheaper than cigarettes.
To use the same example as above, if you smoke 20 cigarettes a day you will probably get through 1/2 to a 3/4 of a refill everyday (depending on how much you use it).
To make it easy let’s say you use a whole refill a day. On average each pack of refills costs £10 and contains 5 refills in a box. That means a refill costs £2, which is a big difference to the £10 a day you
To break down the savings:
- Over a week you will spend £14 on e-cigarette refills, saving £56 compared to cigarettes.
- Over a month you will spend £56 on e-cigarette refills, saving £224 compared to cigarettes
- Over a year you will spend £672 on e-cigarette refills, saving £2688 compared to cigarettes
That means in 1 year of using e-cigarettes, you will almost save enough to pay of that original debt!
The interest will still be applied (as that's how the credit card companies get you), but if you use £200 of the savings and pay that against your credit card debt, you would have it paid off within 1 ½ years!
By switching, you're not even giving anything up. SMOKO E-Cigarettes still have the nicotine and gives you a realistic sensation, but are at least 95% less harmful than traditional cigarettes, have zero smell and are proven to be a better alternative – all at a fraction of the cost you are paying for your current habit.
So if you want to pay off that credit card debt quicker and make a hugely positive change to your life, why not try a SMOKO E-Cigarette Starter Kit. For a limited time, you can even try it for FREE (just pay for the UK Postage and Packaging).