Debt Free Destiny

While it is important to create a budget and establish a savings plan, it can be just as vital to your finances that you take every opportunity to reduce your overall debt. If you do not have the straight cash (I mean, who does?) then it may make sense for you to try other avenues to reduce the amount of money you owe each month, especially if you tend to owe more money than you are making.

Here are some things you can try to make your debt disappear faster and make monthly bill paying easier.

1. Consider Your Student Loans

You may not realize that you can consolidate your student loans and make your monthly payments more manageable each month. Check in with your loan company and find a good consolidation avenue for your college loans.

2. Contact Your Credit Card Company

You may also not realize that you can call your credit card company and ask about a reduction on your rate. This will only work if you are a good customer, always paying your bills on time or balances in full. If the credit card company will not grant your request, then you might want to consider transferring your balances to a low interest credit card. Make sure you are not continuing to use your credit card for cash advances or new purchases. Racking up new debt is certainly not going to save you any money each month.

3. Review Your Health Benefits

Many people make changes in their lives and forget to go back over important information that can be affected by these changes. For example, you may have kids that are no longer your dependents but will find that you might still be paying for their insurance. You may also be able to speak to your human resource representative about less-expensive options that still fit your needs.

4. Refinance Your Home Loan or Your Car Note

You may not find a better deal right now but it won’t hurt to find out some of the rates from other lenders. If you can refinance to reduce your monthly payments, you might be able to use the extra savings towards your other debts and pay off your bills faster.

5. Review Your Car Insurance

Like health insurance, you may be paying for coverage you don’t need or perhaps you can shop around for a better deal. You might lose out on a loyal customer discount but checking out the rates of other companies may be able to save you a nice chunk of change each month, especially if you can pay your premium in one lump sum.

6. Conserve Power

You may not realize how much wasted electricity there is going on around your home. It can make a big dent in your monthly utility bills if you stop leaving the lights on and start unplugging the electrical cords that are not in use. You should also make sure to seal up drafty areas around doors and windows to keep your heating and cooling costs down each month. If you are proactive about what you do at home, it will carry over to lower monthly utilities. In this case, a little goes a long way.