5 Surprising Ways to Lower Your Debt
It’s very easy to get in debt if you aren’t careful about how you spend the money that you have or if you don’t set up a budget. However, if you follow a few simple tips, you can begin to lower, and even remove, the debt in your life. Some of the work requires eliminating some of the luxuries you have for a short time, but if you are able to get back on track with finances, you can slowly add some of those things back.
Insurance, whether it’s for a car, the home or your health, is something that you need if there is an emergency. It’s often something that is required to have in most states, especially car insurance. Shop around for lower monthly rates and deductibles. If you aren’t making car payments, then consider eliminating any part of the policy that isn’t required to have as it will lower what you pay each month.
One of the ways that you might get into debt is by going out to eat or going shopping with money that you really don’t have to spend. For a short time, consider getting clothing and essentials at second hand stores or when they are on clearance. Avoid going out to eat, cooking meals to enjoy at home with the family.
Cancel any subscriptions to magazines and other companies that you don’t need. This will save a lot of money that you might not realize you’re spending. Put the money that you save toward a credit card bill or to another important bill that you have so that you’ll be ahead instead of being behind all of the time.
Everything from Christmas and birthday gifts to the amount of money that you spend at the grocery store can be budgeted. Set limits on how much you can comfortably spend with the money that you bring into the home. Don’t go over that limit as this is an easy way to get in debt, especially if you have a credit card. Use coupons when possible to stay within your budget, or wait until the next week to get the item when you will have money once again to spend, including that item in your budget beforehand.
When you get your hair cut or your nails done, you’re spending money that could be used to put gas in the car or to get groceries. Talk to friends and family to see if you can trade services. Most people know someone who can do nails, cut hair, mow the yard or something that you pay for on a regular basis. When you trade services, it will help everyone save money.