One of the most effective ways of saving money is by cutting down on the amount you pay off your debts if you have them. Paying interest is little more than throwing money away in most cases, so if you can avoid or at least minimized it, then it is only a positive.
Whether you’re currently paying back credit cards, loans of any other kind of debt (plus interest) there are numerous things you can do to make significant savings and have more cash left in your bank account at the end of every month…
Pay More Than the Minimum
One of the simplest ways to save money on the cost of your debts is by paying as much more than the minimum payment as you can afford. When you do this, you will obviously pay your debts off faster and this will mean that you accrue far less intertest. In real terms, that means more money stay in your bank account than it would if you stuck to those pesky minimum payments.
Consolidate Your Debts
If you’re dealing with numerous debts from various different sources, your interest payments are likely to be pretty high, as are your actual repayments. Luckily., there is a simple solution that will deal with both problems in the form of debt consolidation. Basically, you take out a consolidation loan which enables you to clear all of your other debts, reducing your monthly payment and slashing the amount of interest you pay in the process.
A lot of people who are dealing with debts do not realize that it is very possible to renegotiate their payments with their creditors. It’s a lot easier to do this when you’re struggling because otherwise they will want the full sum, and because when they know you’re struggling they would rather get something back than have you default completely, but if you call them and tell them that you can’t afford to pay, they may be willing to freeze your interest for a while or at the very least lower your payments. It is always worth a try.
Obviously, declaring yourself bankrupt is a pretty big step to take and it isn’t something you can or should so just to save money on debt repayments, but if you’re really in over your head and you can’t make those minimum payments let alone cover all of those late payment charges and so on, it is at least worth talking to some good bankruptcy attorneys to assess your options and see if bankruptcy would be best for you. It can be daunting, but so can dealign with angry creditors when you can’t pay, so it’s always good to keep it open as an option.
If you’re paying more than you can afford or more than you would really like on servicing your debts, and especially if you’re struggling under the weight of debt, you should definitely try out one or more of these strategies to save money and improve your situation today.