Save Without Making Any Major Sacrifices

When consumers find themselves deep in credit card debt, they may feel as though there is no way out. However, that simply isn’t true, as people can come up with money to pay down their balances by finding ways to save more. The following are certain methods consumers can use to save without making any major sacrifices:

No. 1 –Look at your cellphone bill

With the emergence of smartphones, people are now paying for minutes, texting and data, among other things . Those who haven’t examined their bill in a while may be spending more money than necessary. It may be a good idea to look this document over to see if there is any way services can be cut. For example, people who don’t text a lot shouldn’t be paying for unlimited texting. Even saving just $10 a month gives someone $120 more per year to put toward their credit card debt.

No. 2 – Refinance your mortgage

Though mortgage rates have increased in recent months, they are still low compared to historic levels, which means refinancing could save homeowners money. If today’s rates are much lower than the one on a person’s current home loan, they may be able to save thousands of dollars a year. However, mortgages aren’t the only loans that can be refinanced, as borrowers can do the same with their car loans and student debt.

No. 3 – Ask for an interest rate reduction

When carrying a balance on credit cards, one of the biggest detriments is a high APR. Each month the debt isn’t paid off in full, it accrues more interest, which can make eliminating the entire amount difficult. To help avoid interest piling up, it may be a good idea to get in touch with the credit card provider and ask for a rate reduction. People who have made on-time payments in the past, and had no issues, may be able to secure a lower APR, which can make it easier to pay off debt.

No. 4 – Take advantage of insurance discounts

Sometimes monthly savings are just a phone call away. For example, senior citizens may be able to get money off their auto insurance policies just for being a certain age. Another popular discount comes with low mileage, which can be used for people who have recently seen a drop in their work commute.

Jessica Williams is Consolidated Credit’s Marketing Communications New Media Coordinator. As a member of the education team, Jessica focuses on helping consumers make better financial decisions while living debt-free. She has previously worked with Take Stock In Children, where she was a mentor and communications specialist, and, where she managed community relations, event planning, marketing, and public relations. Jessica attended both the University of Florida and the University of Central Florida where she received her B.S. in Interpersonal/Organizational Communications and Marketing. Connect with Jessica on Google+.