Discover How to Consolidate Debts
& Save Money
March 6 2015
When it comes to your financial situation, it may seem that trying to achieve your goals is a bit overwhelming. Even if you are
only facing a modest amount of debt, finding ways to climb out and put money back for savings can seem difficult if you try
to tackle all at once.
However, you can certainly pay off loans and credit cards and finance new projects while putting money back all at the same
time with a little planning. Here are some simple tips that will have you consolidating debts and saving money which will
improve your credit score and improve your overall financial position.
Evaluate your Current Financial State
You can’t get where you want to go unless you know where you are first. This means that you’ll need to sit down and go over
your finances that includes the amount of money you earn, bills, debts and other payments so that you can create a proper
plan. You’ll want to look at high interest credit cards and other loans that are accumulating interest as well.
Once you have made an evaluation, the next step is creating a proper plan to effectively deal with your debts and start
saving money. Remember, time is your enemy when it comes to accumulating interest, but it is also your friend when it
comes to building up money for savings. So, you’ll need to strike the right balance in terms of addressing your debts while
Know your Credit Score
Basically, the higher your credit score, the easier it is for you to finance loans, get new credit cards and the like. You’ll want to
know your credit rating for a number of reasons. First, you’ll want to check the accuracy of your credit score to see that all
the information is correct and up to date. Next, you’ll want to see where you can make improvements so that you can qualify
for low interest loans.
One of the easiest ways to consolidate your debt is with a low interest loan that can pay offer credit cards and higher interest
loans so that you can reduce your debt load. The key number is 660 as that is considered a good credit score with 720 being
ideal. If your credit score is lower than 660, you’ll need to address those issues so you can boost your overall credit rating.
Lower Credit Card Interest Rates
Interest rates on credit cards are often higher than normal rates you will find on standard loans. However, they may be easier
to lower than you might think. The first step you should take is calling each credit card company and asking how you can
have the interest rates lowered on your card. Believe it or not more than half the people who call will actually receive specific
instructions or get their rates lowered automatically which can potentially save hundreds of dollars over the course of the
Once you have called all of your credit card companies, the next step is consolidation where you place all the debt onto one
card with the lowest interest rate. You may already have that card or you might sign up for another credit card with a very
low rate and transfer the balances. You’ll not only save money, but you will also make things simple by just paying one
monthly bill for your credit card. Of course, you’ll need to close out the other accounts once this is accomplished.
Keep track of Your Expenses
Over the next month keep track of where you spend every cent of your money. You may be surprised to see how much of it
goes for things that you don’t really need. The easiest way is to get a receipt for everything that you purchase from gas to
coffee to food and all other items. You’ll want to separate the bills that you have to pay from the expenses where you have
more control. Don’t think too much about what you are spending on when doing the evaluation, just save it until the end of
the month when you can go over everything.
You will probably find some of the expenses rather surprising, so you will need to take steps in cutting back so you can keep
more money. By keeping track, you can replace notions of how much you think you spent with the reality of how much has
really left your wallet or pocketbook.
Look for Ways to Trim Bills
Go over all of your bills where you can save money and see what changes you can make. For example, look at your cable or
phone bill and see if switching to a less expensive package can save you some money. You may find that you can save a little
from your phone, cable and other bills which will add up considerably over time.
Trim a Little, Not a Lot Every Week
Arguably the biggest mistake that people make in their expenses is that they try to cut away too much and then find it
impossible to live under those conditions. Basically, you’ll need to identify and expense and look for ways to cut a little bit out
each week so you can start creating a habit of saving money. For example, instead of ordering beverages with lunch try a
glass of water instead. Or, you can bring your own lunch once a week and start saving. Every little bit helps when you are
trying to save money over the long term.
Pocket the Savings
Finally, take all the money that you save from expenses and put it in the bank even if it is $10 to $20 a week. Another trick is
to pay what you can with cash and save the change in a jar. Over time, you’ll find that putting back a little each week will
really start to add up over time and create a savings habit that will stay with you.
These are just a few tips that you can use to lower interest on loans, finance new ways to reduce debt and put money back
into your savings account which will put you on the path to financial freedom.
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